2025 (7) TMI 1533 - HC - VAT / Sales Tax

High Court sets aside order for ignoring stone dust issue under Section 31 of U.P. VAT Act, remits for fresh hearing

The HC set aside the Commercial Tax Tribunal's order dated 14.08.2024 for failing to address the issue of stone dust under Section 31 of the U.P. VAT Act, ... Rectification of mistake - error apparent on the face of record or not - Section 31 of U.P. VAT Act, 2007 - HELD THAT:- From perusal of the order passed by the Tribunal, it transpires that it has dealt with the question of imposition of tax on royalty as far as solemstones is concerned, and also in right to use i.e. use of truck to transport the stone, but no finding has been recorded as to the stone dust, while specific plea was taken under Section 31. It is found that the Tribunal should have recorded its finding as far as stone dust is concerned. In view of the said fact, order dated 14.08.2024 passed by the Commercial Tax Tribunal, Jhansi is set aside. The matter is remitted back to the Commercial Tax Tribunal, Jhansi to decide the matter afresh under Section 31 of the Act, and record its finding on the ground so raised in the said application within a period of two months from the date of production of certified copy of this order, strictly in accordance with law, after hearing the assessee - revision allowed in part. ISSUES: Whether the Commercial Tax Tribunal erred in not reducing the amount of tax on the stone dust ('Chura') manufactured by the assessee while reducing tax on solemstones.Whether the Tribunal failed to record any finding on the rectification application under Section 31 of the U.P. VAT Act regarding the tax amount related to stone dust.Whether the revision should be allowed to set aside the impugned order and decide the questions of law in favor of the assessee to prevent irreparable loss and injury. RULINGS / HOLDINGS: The Tribunal committed an error in not reducing the amount of tax on the stone dust ('Chura') while granting relief on the tax imposed on solemstones.The Tribunal failed to record any finding on the application under Section 31 of the U.P. VAT Act concerning the tax imposed on stone dust, despite the specific plea raised.The impugned order dated 14.08.2024 is set aside, and the matter is remitted to the Tribunal to decide the issue afresh under Section 31, recording findings on the stone dust tax issue within two months. RATIONALE: The legal framework applied includes Section 31 of the U.P. VAT Act, 2007, which governs rectification of mistakes in orders passed under the Act.The Tribunal's order was examined for compliance with the requirement to address all grounds raised in the rectification application, specifically the tax imposed on stone dust.The Court emphasized the necessity for the Tribunal to record findings on all aspects raised under Section 31, including the tax calculation based on royalty for both solemstones and stone dust, to ensure a complete adjudication.No dissent or doctrinal shift was noted; the decision follows established principles requiring comprehensive disposal of rectification applications.