1998 (10) TMI 514 - HC - VAT and Sales Tax

Summary

Issues:
Challenging common order of Trade Tax Tribunal regarding assessment years 1983-84, 1985-86, and 1986-87.

Analysis:
The revision petitions were filed against a common order issued by the Trade Tax Tribunal, Agra, dismissing the revisionist's Second Appeal Nos. 59, 60, and 61 of 1997 for the assessment years 1983-84, 1985-86, and 1986-87. The assessments for these years were initially made by the assessing officer, but the Deputy Commissioner set them aside under section 10-B of the U.P. Trade Tax Act, citing that the excise duty paid on petroleum products was not included in the turnover, specifically in bond to bond supply cases. The revisionist, a Government of India undertaking, contested this decision, claiming no bond to bond supply occurred and no excise duty was excluded from turnover. The Deputy Commissioner remanded the matter for fresh assessment due to lack of produced account books by the assessee. The revisionist then appealed to the Tribunal, arguing that the Deputy Commissioner lacked jurisdiction to revise the assessment orders. However, the Tribunal upheld the Deputy Commissioner's jurisdiction under section 10-B and dismissed the appeals.

The revisionist contended that the Tribunal failed to address their argument that there was no justification for revising the orders under section 10-B as there was no illegality or impropriety in the original assessment. The Tribunal's order did not delve into the merits of the dealer's case. The revisionist's stance was that excise duty should not be included in turnover, contrary to the Deputy Commissioner's view. The Deputy Commissioner cited a legal case but did not establish the similarity between that case and the present situation. The Tribunal's failure to analyze the merits of the Deputy Commissioner's order or the dealer's contentions rendered its decision legally unsustainable.

As a result of the Tribunal's inadequate consideration of the case's merits, the High Court allowed the revision petitions, setting aside the Tribunal's order and directing a fresh decision in accordance with the law.