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of <h1>Review limited to correcting a mistake apparent on the record, not reopening finally decided GST local authority classification</h1> The HC held that review jurisdiction permits re-examination only for a mistake apparent on the record and is not an appellate forum to re-open issues ... Rectification of mistake - mistakes apparent on record - Exemption from GST - pure services or supply of goods to the Notified Area Authority, Vapi - Notified Area Authority, Vapi is a “local authority” or “governmental authority”? - HELD THAT:- It is a settled law with regard to the review of the Judgment. Review means reexamination or reconsideration. Basic philosophy inherent in it is the universal acceptance of the human fallibility as held by the Apex Court in case of S. NAGARAJ AND ORS. VERSUS STATE OF KARNATAKA AND ANR. [1993 (8) TMI 292 - SUPREME COURT]. A Judgment may be open to review if there is a mistake or error apparent on face of the record as the review jurisdiction is not an appellate jurisdiction where error of law can be corrected. An erroneous decision can be corrected by the higher forum. Review therefore, is by no means an appeal in disguise as held by the Calcutta High Court in case of Joginder Pal Kapoor Versus R L Plantation Pvt. Ltd. [2006 (3) TMI 814 - CALCUTTA HIGH COURT] wherein it is held that 'We do not consider that this furnishes a suitable occasion for dealing with this difference exhaustively or in any great detail, but it would suffice for us to say that where without any elaborate argument one could point to the error and say here is a substantial point of law which stares one in the face, and there could reasonably be no two opinions entertained about it, a clear case of error apparent on the face of the record would be made out.' In view of above settled legal position of law, when the issue as to whether the applicant original petitioner would fall within the local authority or not is decided by this Court, the same cannot be reviewed again as it would amount to sitting in appeal by this Court itself on its own judgment and order. Conclusion - i) Review literally and even judicially means re-examination or reconsideration. Basic philosophy inherent in it is the universal acceptance of human fallibility. Yet in the realm of law the courts and even the statutes lean strongly in favour of finality of decision legally and properly made. ii) There was no mistake apparent on the record regarding the application of the Supreme Court decision and the GST Act's definition of 'local authority.' This application is partly allowed. 1. ISSUES PRESENTED and CONSIDEREDThe primary legal issues considered in this judgment are:Whether there is a mistake apparent on the record in the judgment dated 24.04.2024, particularly in the application of the Supreme Court's decision in the New Okhla Industrial Development Authority case.Whether the Notified Area Authority, Vapi qualifies as a 'local authority' under Section 2(69) of the Goods and Services Tax Act, 2017, and thus is entitled to the exemption under Notification No. 12/2017.Whether the judgment incorrectly cited a decision from the Bombay High Court in JSW Energy Ltd. v. Union of India as being referenced by the petitioner.2. ISSUE-WISE DETAILED ANALYSISIssue 1: Mistake Apparent on Record in Applying Supreme Court DecisionRelevant Legal Framework and Precedents: The court examined the applicability of the Supreme Court's decision in New Okhla Industrial Development Authority, which interpreted the term 'local authority' under Section 10(20) of the Income Tax Act, 1961.Court's Interpretation and Reasoning: The court initially applied the Supreme Court's decision, finding that the Notified Area Authority, Vapi, did not qualify as a 'local authority.' The petitioner argued this was a mistake as the GST Act's definition was broader.Key Evidence and Findings: The petitioner pointed to the definition in Section 2(69) of the GST Act, which includes authorities managing a local fund, arguing that Vapi should be considered a local authority.Application of Law to Facts: The court initially applied the Supreme Court's narrower interpretation, but the petitioner argued that the GST Act's broader definition should apply.Treatment of Competing Arguments: The court considered the petitioner's argument but ultimately found no apparent mistake in the application of the Supreme Court's decision.Conclusions: The court concluded that there was no mistake apparent on the record regarding the application of the Supreme Court's decision.Issue 2: Definition of 'Local Authority' under GST ActRelevant Legal Framework and Precedents: Section 2(69) of the GST Act defines 'local authority' to include entities managing a local fund, which the petitioner argued should include Vapi.Court's Interpretation and Reasoning: The court previously found Vapi did not meet the criteria based on the Supreme Court's interpretation under a different statute.Key Evidence and Findings: The petitioner cited the broader definition under the GST Act and relevant state laws, arguing Vapi should qualify.Application of Law to Facts: The court's initial decision did not consider the broader GST definition, which the petitioner argued was an oversight.Treatment of Competing Arguments: The court reviewed the arguments but maintained its original decision, finding no error apparent on the record.Conclusions: The court upheld its decision, finding no grounds for review based on the GST Act's definition.Issue 3: Incorrect Citation of JSW Energy Ltd. CaseRelevant Legal Framework and Precedents: The court acknowledged an error in citing the JSW Energy Ltd. case as being referenced by the petitioner.Court's Interpretation and Reasoning: The court recognized this as a mistake and agreed to correct it by deleting the relevant paragraph.Key Evidence and Findings: The error was noted as a factual mistake in the judgment's text.Application of Law to Facts: The court corrected the record by deleting the erroneous reference.Treatment of Competing Arguments: The respondent acknowledged the citation error but argued it did not affect the judgment's substantive conclusions.Conclusions: The court corrected the citation error but found no further grounds for review.3. SIGNIFICANT HOLDINGSVerbatim Quotes of Crucial Legal Reasoning: 'Review literally and even judicially means re-examination or reconsideration. Basic philosophy inherent in it is the universal acceptance of human fallibility. Yet in the realm of law the courts and even the statutes lean strongly in favour of finality of decision legally and properly made.'Core Principles Established: The court emphasized the limited scope of review, which is not an appeal but a mechanism to correct apparent errors.Final Determinations on Each Issue: The court concluded there was no mistake apparent on the record regarding the application of the Supreme Court decision and the GST Act's definition of 'local authority.' The court corrected the citation error but did not find it affected the judgment's outcome.In summary, the court's decision emphasized the importance of finality in judgments and the limited scope for review, correcting only the citation error while maintaining its original conclusions on the substantive legal issues.
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