2011 (11) TMI 578 - HC - VAT and Sales Tax

Validity of order passed - Held that - The material on record would clearly show that the revisional authority having found on scruny of the material on record and the order passed by the appellate authority holding that the appellate authority had not looked into the records of the assessing officer and he had also not considered the material and the contenons of the pares were also not considered in accordance with law and therefore the order passed by the appellate authority could not be sustained and further held that having regard to the reasons for which the order passed by the appellate authority setng aside the matter, is required to be remitted to the first appellate authority to examine all the issues and pass fresh orders by recording the finding on all issues involved in the cases. No illegality or irregularity in the order of the Addional Commissioner of Commercial Taxes, Bangalore, in passing the impugned order. Decided against assessee.

Summary

Issues:
Appeal against order of Addional Commissioner of Commercial Taxes remitting matter to first appellate authority for fresh appeal order.

Analysis:
The appeal was filed by the assessee against the order of the Addional Commissioner of Commercial Taxes, Bangalore, who had set aside the order of the first appellate authority and remitted the matter for re-examination of all issues discussed in the SMR order. The Deputy Commissioner of Commercial Taxes had initially passed an assessment order disallowing certain deductions claimed by the assessee under the Karnataka Sales Tax Act, 1957. Subsequent appeals and orders resulted in the revisional authority remitting the matter to the first appellate authority for fresh orders. The revisional authority found that the first appellate authority had not properly considered the records and materials, leading to the remittance of the case. The appellant argued that the order of the appellate authority was legally sound and should not have been set aside. However, the court concluded that the revisional authority's decision to remit the matter was justified based on the lack of proper consideration of records by the first appellate authority.

The court carefully considered the arguments presented by both parties and examined the material on record. It was observed that the revisional authority had valid reasons for remitting the matter, as the first appellate authority had not adequately reviewed the records and materials during the appeal process. The court noted that the revisional authority's directive for the first appellate authority to examine all issues and pass fresh orders was appropriate. The court emphasized that any observations made by the revisional authority should not unduly influence the first appellate authority in making decisions on the case. Ultimately, the court found no irregularities in the Addional Commissioner of Commercial Taxes' order and disposed of the appeal with these observations.

In conclusion, the court upheld the decision of the Addional Commissioner of Commercial Taxes to remit the matter to the first appellate authority for re-examination of all issues involved in the case. The court emphasized the importance of proper consideration of records and materials by the appellate authorities in reaching decisions. The appeal was disposed of with the court's observations on the matter.