2022 (4) TMI 646 - HC - VAT and Sales Tax

Maintainability of appeal - benefit of rebate claim - Section 8 of LEAT Act read with Section 46 of VAT Act - HELD THAT - An appeal under the provisions of Section 53 of VAT Act only lies if the case involves a substantial question of law. In the present case, the Assessing Authority while taking note of the facts which reflect in Para 5 of the order of Assessing Authority, passed an order of imposition of the tax under the provisions of LEAT Act and VAT Act amounting to ₹ 11,05,906/-. The same later on was reduced by Lower Appellate Authority, vide its order dated 10.11.2014. Both the authorities took into consideration the entire material produced before them, including the statement of customer of appellant as well, and passed order of imposition of tax under the aforesaid Act. The submission of appellant that the order of Lower Appellate Authority dated 10.11.2014 does not survive anymore, inasmuch as the same merged with the order of Appellate Board dated 15.02.2021 and thus, the rebate which was granted to appellant by the Lower Appellate Authority has also been taken away, is misconceived. The Appellate Board has dismissed the appeal preferred by appellant vide order dated 15.02.2021 as a result of which, the order of Lower Appellate Authority dated 10.11.2014 has been confirmed. Therefore, the rebates which were made available to the appellant by the Lower Appellate Authority i.e. Deputy Commissioner Commercial Tax in its order dated 10.11.2014 are still available to appellant having not been interfered with by the Appellate Board in its order. The appeal being devoid of merits stands dismissed at admission stage sans cost.

Summary

Issues:
1. Challenge to order of Appellate Board dismissing appeal.
2. Interpretation of provisions of LEAT Act and VAT Act.
3. Merging of orders by Lower Appellate Authority and Appellate Board.
4. Availability of rebates to the appellant.

Analysis:
1. The appellant challenged the order of the Appellate Board dated 15.02.2021, which dismissed the appeal. The appellant contended that the benefit of rebate granted by the Lower Appellate Authority was taken away by the Appellate Board's order, leading to the present appeal.

2. The case involved the interpretation of the provisions of Madhya Pradesh Vilasita, Manoranjan, Amod Evam Vigyapan Kar Adhiniyam, 2011 (LEAT Act and VAT Act). The Assessing Authority imposed a tax liability on the appellant, which was later modified by the Lower Appellate Authority. Both authorities considered the evidence, including customer statements, before making their decisions.

3. The appellant argued that the order of the Lower Appellate Authority merged with the Appellate Board's order, affecting the availability of rebates. However, the court held that the order of the Lower Appellate Authority dated 10.11.2014 still stood as it was confirmed by the Appellate Board's order dated 15.02.2021. Therefore, the rebates granted by the Lower Appellate Authority remained available to the appellant.

4. The court found no substantial question of law in the appeal, as the Appellate Board's decision was based on factual findings without any violation of statutory provisions. Consequently, the appeal was dismissed at the admission stage without costs, as it lacked merit based on the court's analysis of the legal issues involved.