Final fact-finding authority may set aside remand where tyre retreading materials are not liable to works contract tax.

The Tax Board, as the final fact-finding and appellate authority under the Rajasthan Sales Tax Act, 1994, could examine both facts and law and substitute its own conclusion despite the first appellate authority's remand. Relying on Supreme Court authority that binding gum and rubber imported for tyre retreading were not exigible to works contract tax, it found no purpose in remanding the matter to the assessing authority. The interference with the remand order was therefore justified, and the finding that no tax was leviable on the import of raw material for tyre retreading was upheld in favour of the assessee.

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Issues: Whether the Tax Board was justified in setting aside the remand order and affirming that no works contract tax could be levied on the import of raw material for tyre retreading.

Analysis: The Tax Board, as the final fact-finding and appellate authority under the Rajasthan Sales Tax Act, 1994, was competent to examine both facts and law and to record its own conclusion despite the first appellate authority's remand. The Board relied on the Supreme Court's ruling that the import of binding gum and rubber for tyre retreading was not exigible to works contract tax, and therefore found that no purpose would be served by remanding the matter to the assessing authority.

Conclusion: The interference with the remand order was justified, and the finding that no tax was leviable was upheld in favour of the assessee.

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