1993 (6) TMI 233 - HC - VAT and Sales Tax

Summary

Issues:
Rate of tax leviable on trailers manufactured by the assessee-firm for assessment years 1978-79, 1979-80, 1980-81, and 1981-82. Interpretation of entry 8 and entry 138 of the First Schedule of the Kerala General Sales Tax Act, 1963. Compliance with the order of remit by the Sales Tax Appellate Tribunal. Legal effect of the communication of the Board of Revenue dated April 28, 1970, and the Government order dated August 21, 1984.

Analysis:
The High Court heard a batch of revisions filed by the same assessee against a common order passed by the Sales Tax Appellate Tribunal regarding the rate of tax on trailers manufactured by the assessee-firm. The Tribunal had held that trailers would be taxed at 15% for the relevant assessment years. The High Court noted that the Tribunal's decision was based on a Bench decision and observed that the Tribunal did not consider the legal effect of relevant communications by the Board of Revenue and the Government. The Court emphasized the importance of considering relevant statutory provisions and Supreme Court decisions in such matters. The High Court set aside the Tribunal's order and remitted the matter back for proper consideration in accordance with the law.

In the subsequent proceedings, after the remit, the Sales Tax Appellate Tribunal failed to comply with the High Court's order and ignored the directive to consider the appeals in accordance with the law and the observations in the previous judgment. The Tribunal erroneously concluded that trailers would be taxed at 15% without discussing or recording any findings as directed. The High Court found the Tribunal's order to be infirm and set it aside, directing the Tribunal to reconsider the appeals in compliance with the law and the previous judgment.

Additionally, the High Court clarified that certain communications of the Board of Revenue and the Government, crucial to the case, were not adequately considered in a previous Bench decision. The Court highlighted the importance of taking into account the specific orders dated April 28, 1970, and August 21, 1984, in the fresh consideration of the appeals by the Sales Tax Appellate Tribunal. The Court emphasized the need for a comprehensive review of all relevant documents and legal implications in the upcoming proceedings.