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of <h1>High Court remands case for comprehensive review of agreement, exempts assessee pending new orders.</h1> <h3>Prakash Gramodyog Samiti Versus Commissioner of Trade Tax, UP., Lucknow</h3> Prakash Gramodyog Samiti Versus Commissioner of Trade Tax, UP., Lucknow - [2011] 43 VST 481 (All) Issues:1. Inclusion of tax amount in taxable turnover2. Validity of the agreement dated April 6, 19963. Compliance with previous court judgments4. Jurisdiction of Deputy Commissioner to remand the matterAnalysis:Issue 1: Inclusion of tax amount in taxable turnoverThe assessee argued that the tax collected and deposited was already accounted for in the books of accounts, and therefore should not be subject to additional taxation. The first appellate authority, however, viewed the segregation of tax in the books as an indication of extra tax collected, leading to a false addition to the taxable turnover. The High Court noted that the acceptance of the books of accounts by the authority should preclude additional taxation on the segregated amount. The matter was remanded to the Tribunal for further examination.Issue 2: Validity of the agreement dated April 6, 1996The agreement in question was between the assessee and a purchaser, where the price was predetermined and inclusive of taxes. The Tribunal found the agreement not binding on the Department and called for a thorough examination to determine if the tax was included in the turnover as part of the composite price or if it should be taxed separately. The High Court emphasized the need for a detailed investigation into the agreement to resolve this issue effectively.Issue 3: Compliance with previous court judgmentsThe assessee cited various court judgments to support their arguments, highlighting the need for alignment with past decisions in similar cases. The High Court acknowledged the relevance of these judgments and emphasized the importance of considering them in the reconsideration of the matter by the Tribunal.Issue 4: Jurisdiction of Deputy Commissioner to remand the matterThe jurisdictional aspect of the Deputy Commissioner's decision to remand the matter for re-verification of the exemption granted under section 4AA of the Act was challenged. The High Court agreed with the assessee that the first appellate authority overstepped its bounds by raising new issues and remanding the matter beyond the scope of the appeal. The High Court deemed the remand without authority and called for a fresh examination by the Tribunal on this aspect.In conclusion, the High Court remanded the entire matter to the Tribunal for a comprehensive reconsideration of the agreement, exemption grounds, and other relevant aspects. The Tribunal was directed to pass appropriate orders within a specified timeframe, and no recovery was to be made against the assessee until fresh orders were issued. The impugned order of the Tribunal was set aside, and the revision was allowed without costs.
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