2019 (9) TMI 884 - HC - VAT and Sales Tax

High Court revises Tribunal decision, upholds rebate under U.P. Trade Tax Act, deems benefit final and absolute.

M/s Uttaranchal Iron And Ispat Ltd. Versus The Commissioner Commercial Taxes U.P. Lucknow

M/s Uttaranchal Iron And Ispat Ltd. Versus The Commissioner Commercial Taxes U.P. Lucknow - TMI Issues:1. Validity of order passed under Section 22 of the U.P. Trade Tax Act2. Interpretation of the order dated 31.12.2002 by the Divisional Level Committee, GarhwalAnalysis:Issue 1: Validity of order passed under Section 22 of the U.P. Trade Tax ActThe case involved a revision filed against the Commercial Tax Tribunal's order that withdrew the benefit of rebate claimed by the assessee under Section 5 of the U.P. Trade Tax Act. The Tribunal had reversed the first appeal order and restored the order passed under Section 22 of the Act. The main contention was whether the order under Section 22 was illegal and without jurisdiction. The Divisional Level Committee, Garhwal had granted exemption to a new unit established by a company, which was later transferred to the present assessee. The assessee claimed rebate under a notification dated 23.11.2000. Subsequently, proceedings were initiated to cancel the eligibility certificate, but it was later revived by the High Court. The assessing officer initially granted the rebate, but later denied it based on the cut-off date mentioned in the rebate notification. The High Court held that the order passed by the Tribunal was incorrect as the benefit of rebate was valid and final.Issue 2: Interpretation of the order dated 31.12.2002 by the Divisional Level Committee, GarhwalThe second issue revolved around the interpretation of the order dated 31.12.2002 by the Divisional Level Committee, Garhwal. The order revived the exemption to the new unit in favor of the present assessee for the remaining period of exemption. The High Court analyzed whether this order constituted an independent eligibility certificate or an amendment to the original certificate. It was concluded that the order did not grant fresh exemption but only continued the existing facility in accordance with the Act. The High Court found that the order was not issued de novo and did not change the validity commencement date. The question of whether this order was debatable was considered, and it was determined that the assessee was entitled to the benefit of rebate as it fell outside the rectification of mistake proceedings. The benefit of rebate granted under the assessment order was deemed final and absolute.In conclusion, the High Court allowed the revision in favor of the assessee, setting aside the Tribunal's order and answering the questions of law in the affirmative.