2014 (8) TMI 934 - HC - VAT and Sales Tax

Maintainability of appeal - Residual matter - Non consideration of Form F - Tribunal held that the question of maintainability of the appeal can be decided at the time of hearing of the appeal - Held that - Tribunal itself is not sure of the maintainability of the appeal. In such an event I do not know how the petition for stay alone could be numbered and stay granted on condition that the petitioner deposits 25 lakhs. In the event of the Tribunal ultimately holding that the appeal is not maintainable the conditional order passed will also fail for want of jurisdiction. - instead of allowing the Tribunal to take up the issue of maintainability eventually leaving both the assesee and the Department in the lurch the matter can be remitted back to the 2nd respondent for a fresh consideration. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Challenge to condition imposed by Sales Tax Appellate Tribunal requiring deposit of Rs. 25 lakhs, maintainability of appeal, consideration of 'F' forms by Assessing Authority.

Analysis:
The petitioner challenged the condition imposed by the Sales Tax Appellate Tribunal, directing the deposit of Rs. 25 lakhs. The Tribunal had returned the appeal stating that for residual matters, the appeal was not permissible. However, upon the petitioner's counsel mentioning before the Tribunal, only the stay petition was numbered, granting an interim stay subject to the deposit. The Tribunal did not direct the appeal to be numbered and reserved the decision on maintainability for the appeal hearing. The High Court noted the uncertainty regarding the appeal's maintainability and the conditional order's validity if the appeal is found not maintainable. The Court found it inappropriate for the stay petition alone to be numbered and granted based on a deposit condition when the appeal's maintainability was uncertain.

The main grievance of the petitioner was that the 'F' forms submitted by them were not considered by the Assessing Authority, which would have reduced the taxable turnover significantly. If the 'F' forms were considered, the tax liability would have been much lower. The Court opined that instead of leaving both the assessee and the Department in uncertainty regarding the appeal's maintainability, it would be better to remit the matter back to the Assessing Authority for a fresh consideration. Therefore, the High Court set aside the impugned order, allowed the writ petition, and remitted the matter back to the Assessing Authority for fresh consideration after the petitioner deposits Rs. 1,74,735.

In conclusion, the High Court found the condition imposed by the Tribunal questionable due to the uncertainty surrounding the appeal's maintainability. The Court emphasized the importance of considering the 'F' forms submitted by the petitioner and decided to remit the matter back to the Assessing Authority for a fresh determination. The judgment favored the petitioner by setting aside the Tribunal's order and providing clarity on the next steps to be taken in the case.