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of <h1>High Court upholds Trade Tax Tribunal's power to waive tax based on circular, emphasizing binding nature.</h1> <h3>The Commissioner Trade Tax Versus M/s. Dabur India Ltd.</h3> The Commissioner Trade Tax Versus M/s. Dabur India Ltd. - TMI Issues Involved:1. Interpretation of law regarding the Trade Tax Tribunal's authority to waive tax imposition.Detailed Analysis:The judgment by the High Court of Allahabad involved a revision arising from the Trade Tax Tribunal's order dated 09.09.2004, where the Tribunal had allowed the second appeal of a dealer for the assessment year 1989-1990 (Central) and completely waived the tax. The main question of law in this case was whether the Trade Tax Tribunal was legally justified in knocking down the tax imposed under section 21 of the Act, despite the turnover in question escaping assessment due to the treatment of the Commissioner Circular dated 23.7.1987 as a government-issued notification. The learned standing counsel for the revisionist agreed that the matter was covered by a previous judgment of the Court in M/s Dabur India Limited, Ghaziabad Vs. Commissioner of Trade Tax [2005 U.P.T.C. 666]. The Court referred to paragraph 16 of the judgment, which emphasized that circulars issued by the Department, even if contrary to the provisions of the Act, are binding. Once a view has been taken by the Assessing Authority based on such circulars, it is not open to the Revenue Authority to challenge it. The presence of a circular exempting certain sales from tax under the Central Sales Tax Act made it debatable whether a different view could be taken. The Court concluded that the alleged mistake in this case was not a mistake apparent on the face of the record that could be rectified under Section 22 of the Act. As a result, the question was answered against the Revenue, and the revision was dismissed.In summary, the judgment clarified the binding nature of circulars issued by the Department, the limitations on Revenue Authority to challenge views based on such circulars, and the criteria for rectifying mistakes under the Act. The decision highlighted the importance of consistency in applying legal interpretations and the need to adhere to established opinions and circulars in tax assessments.
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