Review for error apparent allowed where Rule 58 did not apply to composition scheme assessments

Review was allowed because the earlier dismissal proceeded without considering that Rule 58 of the Maharashtra Value Added Tax Rules, 2005 applies to regular works contract assessments and not to assessments under the composition scheme. The court held that this overlooked distinction amounted to an error apparent on the face of the record. The prior order was therefore recalled, and the revenue appeal was directed to be reconsidered afresh.

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Issues: Whether the earlier order dismissing the Revenue's appeal required recall in review because the applicability of Rule 58 of the Maharashtra Value Added Tax Rules, 2005 to an assessment under the composition scheme had not been considered.

Analysis: The earlier dismissal had proceeded on the basis of Trade Circular No. 6T of 2015 and the position that service tax would not form part of sale price under Section 2(25) of the Maharashtra Value Added Tax Act, 2002 where sale price was determined under Rule 58. On review, it was pointed out that Rule 58 applies to regular assessments of works contracts and not to assessments under the composition scheme. Since that distinction had not been specifically brought to notice earlier, the order suffered from an error apparent on the face of the record.

Conclusion: The earlier order was recalled and the appeal was directed to be placed for fresh consideration.

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