1991 (2) TMI 362 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the Delhi Sales Tax Act, 1975 regarding the classification of a product.
2. Review of a decision by the Sales Tax Tribunal.
3. Determination of the limitation period for filing an application under section 45(1) before the Tribunal.

Detailed Analysis:
1. The case involved an application under section 49 of the Delhi Sales Tax Act, 1975, to determine whether a product manufactured by the petitioner, odomos, should be classified as a drug, medicine, or pharmaceutical preparation for tax purposes. The Commissioner initially held that odomos should be taxed at 7%, as it did not fall under any of the specified categories. The Sales Tax Tribunal upheld this decision on appeal.

2. The petitioner filed a review application before the Appellate Tribunal, arguing that a previous observation made by the Tribunal was incorrect. The review application was allowed, and the Tribunal amended its earlier judgment to reflect the petitioner's contention that odomos could be considered a pharmaceutical preparation. Subsequently, the petitioner filed an application under section 45(1) before the Tribunal, which was dismissed on the grounds of being time-barred.

3. The High Court analyzed the limitation issue, considering the Supreme Court's decision in Kundan Lal Srikishan v. Commissioner of Sales Tax. The court determined that the order correcting the mistake in the original judgment constituted a review similar to a rectification order. As per legal principles, the limitation period for filing the application under section 45(1) should be counted from the date of the corrected order, not the original judgment. Therefore, the High Court found that the petitioner's application was not time-barred and quashed the Tribunal's decision, directing a reconsideration of the application on its merits.

In conclusion, the High Court issued a writ of certiorari to set aside the Tribunal's order dismissing the petitioner's application and instructed the Tribunal to review the application on its merits. The petitioner was directed to appear before the Tribunal for further proceedings.