2018 (8) TMI 1210 - HC - VAT and Sales Tax

Exemption u/r 12-A of the U.P. Trade Tax Rules, 1948 - denial on the ground that Form 3-A which had been submitted were invalid - Held that - An incongruous situation has arisen where under the impugned order so far as this revision is concerned the matter stands remanded to the Assessing Authority whereas for the other assessment years in respect of the same revisionist the matter stands remanded to the First Appellate Authority vide judgment dated 12.04.2018. In this view of the matter, the same are applicable in this case also this Court is of the view that this matter should also be remanded to the First Appellate Authority instead of the Assessing Authority with the caveat that in proceedings, if any, held by the Assessing Authority after the passing of the interim order dated 18.05.2001 the pleadings or material collected therein, if at all, can be utilized and/or taken into consideration by the First Appellate Authority to decide the appeal in question. The First Appellate Authority shall now proceed to consider the First Appeal of the revisionist herein pertaining to the assessment year 1995-96 - revision disposed off.

Summary

Issues involved: Assessment of tax for the year 1995-96, denial of exemptions under Rule 12-A of U.P. Trade Tax Rules, validity of Form 3-A submissions, appeal process, remand to Assessing Authority, remand to First Appellate Authority, interim orders, revisional powers under U.P. Trade Tax Act 1948, entitlement to tax exemption, compliance with relevant rules, incongruous situation in judgments.

Analysis:

The judgment by the High Court of Allahabad pertains to a revisionist who was assessed for tax for the year 1995-96. The denial of certain exemptions under Rule 12-A of the U.P. Trade Tax Rules was based on the invalidity of Form 3-A submissions. An appeal was filed challenging this decision, leading to a subsequent application under Section 22 of the Act, resulting in the matter being remanded back to the Assessing Authority for fresh assessment. A second appeal before the Tribunal was rejected, making the order of the First Appellate Authority remanding the matter back to the Assessing Authority operative. An interim order was passed by the Court, preventing the Assessing Authority from passing a final order until the next listing date.

The judgment also references a similar case involving the revisionist for assessment years 1997-98 and 1998-99. In this case, the Tribunal remanded the matter back to the First Appellate Authority for a re-look at the issue of tax exemption eligibility under Rule 12-A. The High Court disposed of the revisions in this case without prejudice to the rights of the parties before the First Appellate Authority.

An incongruous situation arose where different judgments remanded the matter to the Assessing Authority and the First Appellate Authority for different assessment years of the same revisionist. To address this, the Court decided to remand the matter to the First Appellate Authority instead of the Assessing Authority. The First Appellate Authority was directed to consider the First Appeal of the revisionist for the assessment year 1995-96 in line with the previous judgment. All pleas were deemed open for being raised before the First Appellate Authority, and the revision was disposed of at the admission stage.

Overall, the judgment clarifies the process of remand, the role of different authorities in tax assessments, and the importance of compliance with relevant rules and procedures in tax matters, ensuring that all parties have the opportunity to present their case effectively before the appropriate authority.