Material grounds must be adjudicated; Tribunal order set aside and remand ordered for fresh consideration.

A quasi-judicial authority must decide every material contention raised before it and give reasoned findings on the issues pleaded. Where the assessee specifically challenged levy of tax under Section 3(2) on materials supplied by the contractee, but the Tribunal addressed only the composition scheme assessment and ignored that ground, its order could not stand. The HC therefore set aside the Tribunal's order and remanded the matter for fresh consideration on all contentions left open.

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Issues: Whether the Tribunal's order was liable to be set aside and the matter remanded where it failed to adjudicate the assessee's specific challenge to the levy of tax under Section 3(2) on materials supplied by the contractee for execution of works contract.

Analysis: The assessee had raised a specific ground before the Tribunal that, after the assessment was taken under the composition scheme, tax could not again be added under Section 3(2) treating the goods supplied by the contractee as purchases by the contractor. The order of the Tribunal did not record any finding on this contention and proceeded only on the validity of assessment under the composition scheme. A tribunal is required to deal with each material ground urged before it and return a reasoned finding on the issue raised.

Conclusion: The Tribunal's order could not be sustained in the absence of any finding on the assessee's material contention, and the matter was remanded for fresh consideration.

Final Conclusion: The appeal was allowed in part, the Tribunal's order was set aside, and the dispute was sent back for reconsideration on all contentions left open.

Ratio Decidendi: A quasi-judicial authority must adjudicate every material ground raised before it, and failure to decide a substantive contention warrants interference and remand for fresh consideration.

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