– “The Tribunal should refrain itself from such practice of avoiding to decide the issues before it being the last fact- finding court and when all the evidence and material are before it, decision should be taken either way.”
The Allahabad High Court (HC) lashed against the Commercial Tax Tribunal and commented that Taxing authorities and Tribunal should understand concept of remand before applying it
A survey was made by the Special Investigation Branch (SIB)on the warehouses of the dealer. A demand of Rs.60 lakhs was made from the dealer. The order of the Assessing Authority was challenged before the First Appellate Authority, while allowing the appeal remanded back the matter to assessing authority with certain directions to pass fresh orderRs.3 crores against the revisionist, M/S Johnson Matthey Chemicals India Private Limited and capital goods credit was denied on ground that dealer was not manufacturer.
The order was challenged through appeal before Additional Commissioner Grade under Section 55 of the Uttar Pradesh Value Added Tax Act, 2008. The First Appellate Authority dismissed the appeal upholding the assessment order. Against the said order, a second appeal was preferred before the Tribunal by the assessee under Section 57 of the Uttar Pradesh Value Added Tax Act, 2008 which was also dismissed. Hence, the present revision.
Suyash Agarwal, Counsel for the revisionist submitted that the Tribunal was not justified in remanding back the matter to the assessing authority when all the material was before the Tribunal. The Counsel then invited the attention of the Court to the grounds taken before the Tribunal wherein also the assessee had brought to the notice about the documents submitted before the Assessing Authority as well as the First Appellate Authority. According to the Counsel, the Tribunal was not justified in remanding back the matter to the assessing authority when all the material was already on record.
Rishi Kumar, Standing Counsel appearing for the State submitted that Tribunal had rightly remanded back the matter to the assessing authority after formulating issue to be decided and the material which has to be brought on record by the assessee.
The concept of remanding back the issue finds place in Order 41 Rule 23, 23-A and 25 of the Code of Civil Procedure, 1908 (CPC). Order 41 of CPC deals with appeals from original decrees. Rule 23, 23-A, 24 and 25 deal with the matter of remand by the Appellate Authority.
The principle envisaged under Rule 23, 23A, 24 and 25 of Order 41 CPC is of great relevance and has to be considered by the all the authorities, Tribunals and courts while exercising the power of remand.
Setting aside the remand back proceedings a Bench of Justice Rohit Agarwal observed that “The officials and the members of the Tribunal who are dealing with the tax matters should be sensitive of the fact that business matter should be dealt and tried with strictly in accordance with law, at the earliest. Delay only leads to more litigation and loss to the revenue.”
“The taxing authorities as well as the Tribunal should first understand the concept of remand before applying it. It should not be in a casual manner. Long litigation in commercial and business matter only spoils the image of the State and its functionaries and cause great loss to business world” the Tribunal said.
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