2010 (6) TMI 719 - HC - VAT and Sales Tax

Summary

Issues involved:
Whether the tax imposed under the U.P. Value Added Tax Act, 2008 on artificially created light energy (ACLE) as "goods" is correct or not.

Analysis:
The judgment of the Karnataka High Court in Bharti Airtel Ltd. case was relied upon by the assessing officer to impose the tax on ACLE. However, it was brought to light that the Supreme Court had set aside the Karnataka High Court judgment. The petitioner raised this issue before the assessing officer, emphasizing the Supreme Court's decision. The Supreme Court had left it open for the first appellate authority to decide whether ACLE can be considered as "goods" under the Act, thereby nullifying the Karnataka High Court's observations.

The assessing officer was expected to record a finding on the petitioner's raised grounds and provide a reasoned order, considering the Supreme Court's judgment. The petitioner sought a writ of certiorari to quash the assessing officer's order, but it was noted that an appeal under section 55 of the U.P. VAT Act, 2008 was an alternative remedy available to the petitioner.

Citing various Supreme Court cases, it was highlighted that the appellate court's power is broader than that of the High Court under article 226/227 of the Constitution. Therefore, the appellate authority was deemed capable of adjudicating the petitioner's concerns effectively. Consequently, the High Court declined to interfere with the assessing authority's order, with the petitioner agreeing to file an appeal within two weeks.

The High Court directed that if the appeal was lodged within two weeks, the appellate authority should consider the petitioner's grounds and relevant judgments, including those of the Supreme Court or High Court, and issue a reasoned order within four months. During this period, the petitioner was not compelled to pay the tax imposed by the assessing officer. The writ petition was disposed of with nominal costs.