2007 (8) TMI 812 - HC - VAT and Sales Tax

Summary

Issues:
The judgment involves challenging orders issued by the Sales Tax Appellate Tribunal rectifying common orders in appeals against sales tax assessments under the local Act and under the Central Sales Tax Act for the assessment years 1998-99 and 1999-2000.

Issue 1: Rectification under Section 43 of KGST Act
The Petitioner, a small scale industrial unit, was engaged in purchase of field rubber latex, conversion to centrifuged latex, and sale of products both local and interstate. The Tribunal rectified their earlier order based on conflicting decisions of the High Court and Supreme Court. The Tribunal invoked powers under Section 43 of the KGST Act to rectify the order, but the High Court found that there was no apparent error on the face of the record to justify the rectification. The Tribunal's rectification resulted in adverse consequences for the Petitioner, leading to a higher CST rate. The High Court held that the Tribunal wrongly invoked jurisdiction under Section 43 to correct their earlier order, as the issue was highly debatable and capable of different conclusions. The rectified order was set aside.

Issue 2: Original Order and Revision
The Government Pleader argued that the original order of the Tribunal was not accepted by the Respondents, but by the time they sought to file revision petitions, the Tribunal had already initiated rectification proceedings resulting in the impugned orders. The Government Pleader contended that since the Tribunal rectified the earlier orders in favor of the Revenue, a revision could not be filed. The High Court did not express a view on the correctness of the original order, Ext. P-1, which now stands restored by setting aside the rectified orders. The High Court left it to the Respondents to challenge the original order in appropriate proceedings.

The Writ Petitions were allowed accordingly.