1998 (9) TMI 668 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of assessment order post setting aside of remand order by Trade Tax Tribunal.
2. Interpretation of statutory right of appeal in relation to assessment orders.
3. Impact of subsequent orders on pending appeals.

Analysis:

Issue 1: Validity of assessment order post setting aside of remand order
The case involved a revision petition under Section 11 of U. P. Trade Tax Act challenging the validity of an assessment order made after a remand order was set aside by the Trade Tax Tribunal. The key question was whether the assessment order passed in consequence of the remand order survived when the remand order itself was later set aside by the Tribunal. The Tribunal held that the assessment order became null and void once the remand order was set aside, emphasizing that the right of appeal is a statutory right that cannot be pre-empted by a hasty assessment.

Issue 2: Interpretation of statutory right of appeal
The Tribunal's decision was based on the principle that the right of appeal against an order of remand should not be frustrated by hurried compliance with the remand order. The Tribunal referred to a previous judgment highlighting that any order made in compliance with a remand order would be subject to the result of the appeal against the remand order. This underscores the importance of preserving the right to appeal even if subsequent actions are taken in compliance with the remand order.

Issue 3: Impact of subsequent orders on pending appeals
The judgment drew a parallel with a Supreme Court case to emphasize that subsequent orders made in compliance with a remand order are always subject to the result of any appeal against the remand order itself. Therefore, in the present case, where the remand order was set aside while a second appeal was pending, the subsequent assessment order was deemed null and void. The Tribunal's failure to consider this aspect was deemed erroneous, and the revision petition was allowed, setting aside the impugned order and quashing the assessment order.

In conclusion, the High Court's decision highlighted the significance of upholding the statutory right of appeal and ensuring that subsequent orders are always subject to the outcome of pending appeals against the initial orders. The judgment serves as a reminder of the procedural safeguards in place to protect parties' rights in the face of administrative actions.