2026 (3) TMI 1586 - HC - VAT / Sales Tax

Rectification rejection under the Karnataka VAT Act is not appealable where Section 69 deeming fiction applies only after amendment.

An appeal under Section 63 of the Karnataka Value Added Tax Act was held not maintainable against rejection of a rectification application relating to an ... Maintainability of appeal against rejection of rectification application - Rejection of a rectification application filed in relation to an order passed in appeal under Section 62, in view of the deeming provision in Section 69 - Rectification of mistakes - Mistake apparent from the record. Appeal maintainability - Rectification of mistakes - Deeming fiction - HELD THAT: - The Court held that Section 63 permits an appeal to the Tribunal against an order passed under Section 62 or Section 63A. Under Section 69(4), an order passed under Section 69(1) is deemed to be an order passed under the same provision as the original order only where the rectification application is entertained and the mistake is actually rectified. Where the rectification application is rejected, that deeming fiction is not attracted. Consequently, rejection of a rectification application seeking correction of an appellate order under Section 62 does not itself become an appealable order under Section 62 for the purposes of Section 63. [Paras 8, 9] The Tribunal was right in rejecting the appeal as not maintainable, and no interference was warranted. Final Conclusion: The revision petition was dismissed. The High Court upheld the Tribunal's view that no appeal lay under Section 63 against mere rejection of the rectification application. Issues: Whether an appeal under Section 63 of the Karnataka Value Added Tax Act, 2003 lies against rejection of a rectification application filed in relation to an order passed in appeal under Section 62, in view of the deeming provision in Section 69.Analysis: Section 63(1) permits an appeal to the Karnataka Appellate Tribunal against an order passed under Section 62 or Section 63A. Section 69 empowers rectification of mistakes apparent from the record, and Section 69(4) deems an order passed under Section 69(1) to be an order passed under the same provision under which the original order was made. That deeming consequence applies when rectification is entertained and the order is actually amended. Where the rectification application itself is rejected, the deeming fiction does not operate, and the rejection order does not become an appealable order under Section 63.Conclusion: The appeal under Section 63 was not maintainable against rejection of the rectification application.Final Conclusion: The revision petition failed because the Tribunal's view on non-maintainability was upheld, and the challenge to the rejection of the rectification application did not succeed.Ratio Decidendi: The deeming fiction in Section 69(4) applies only where rectification results in an amended order; a mere rejection of the rectification application does not convert the rejection into an appealable order under Section 63.