2024 (1) TMI 576 - SCH - VAT and Sales Tax

Refusal to grant the input tax credit - Section 28(2)(i) U.P. VAT Act - levy of Entry Tax - HELD THAT - The High Court, without issuing notice to the respondent, proceeded to set aside the judgment of the Tribunal and remanded the matter back to the Assessing Authority. The High Court ought not to have passed such an order without giving an opportunity to the respondent. The appellant has right to be heard if the order of the Tribunal standing in its favour is to be set aside. At the same time, the High Court is under a duty to provide an opportunity to the affected party. Appeal allowed.

Summary

Issues Involved:
The judgment deals with the issue of setting aside a judgment without notice to the respondent and the duty of the High Court to provide an opportunity to the affected party.

Setting Aside Judgment Without Notice:
The Supreme Court addressed the issue of the High Court setting aside a judgment without issuing notice to the respondent. The Court noted that the High Court remanded the matter back to the Assessing Authority without giving an opportunity to the respondent. The Court emphasized that the appellant has the right to be heard if the Tribunal's decision in its favor is to be set aside. It was highlighted that the High Court is duty-bound to provide an opportunity to the affected party before passing such orders.

Remand and Notice Requirement:
In response to the above issue, the Supreme Court allowed the appeals, setting aside the judgment of the High Court and remanding the matter back. The Court directed the High Court to issue notice to the respondent and hear both parties before passing any further orders. This decision ensures that the principles of natural justice are upheld, and all parties have a fair opportunity to present their case.

Costs Allocation:
Lastly, the Supreme Court ruled that the parties involved shall bear their own costs. This decision clarifies the financial responsibility of each party in the legal proceedings, ensuring transparency and fairness in the allocation of costs.