2007 (9) TMI 579 - HC - VAT and Sales Tax

Summary

Issues: Revisions under section 11 of the U.P. Trade Tax Act, 1948 against the Tribunal's order for assessment years 1990-91 to 1996-97; Trade Tax Revision No. 1221 of 2007 for the assessment year 1993-94 under section 22 of the Act.

Analysis:
- The applicant, a limited company, engaged in manufacturing and sales of lubricants and grease, allowed amounts towards sale promotion to customers which were deducted from taxable turnover. The assessing authority disallowed the claim, but the Deputy Commissioner (Appeals) Trade Tax, Agra accepted it.
- The Commissioner of Trade Tax appealed to the Tribunal, which remanded the matter for fresh assessment. The applicant argued that no further investigation was needed as the issue was a pure question of law regarding deduction under the U.P. Trade Tax Act.
- The High Court found the Tribunal's remand order illegal, stating that no dispute of fact existed, and the issue of deduction was a pure question of law. Each assessment year is independent, and the Tribunal's remand was unjustified.
- Citing the case of Bharat Sanchar Nigam Ltd. v. Union of India, the High Court emphasized the need to decide the issue independently for each year. Consequently, the High Court set aside the Tribunal's order and remanded the matter back to decide the appeals afresh in accordance with the law.

Conclusion: All revisions were allowed, the Tribunal's order was set aside, and the matter was remanded back to the Tribunal for fresh adjudication of the appeals.