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2021 (9) TMI 379 - HC - VAT and Sales TaxJurisdiction - Power of Tribunal to enhance the tax liability - Section 57 of the U.P. Value Added Tax Act, 2008 - manner of assessment by the taxing authorities, correct or not - working days ought to have been worked out treating it to be 300 working days, whereas assessment was made on the basis of lesser days of working - Whether the Tribunal being a last fact finding authority is legally correct in remanding the case to appellate authority for decision afresh when all the material for deciding the case was available on record? - HELD THAT:- It is admitted fact that the order of assessment the assessee preferred appeal and all facts and materials relating to determination of petitioner's liability to pay tax were available on record before the appellate authority. When the matter was carried further in appeal before the Tribunal, all relevant records were available with the Tribunal itself. The Tribunal, in such circumstances, could exercise its power in the manner specified in Sub-section (8) of Section 57 of the Act of 2008 - the enquiry contemplated in Sub-section (b) of Section 57(8) of UP VAT Act, is with regard to determination of facts which are not sufficient for determining the liability to determine tax. Materials for correct determination of liability to pay tax did exist on record. The Tribunal would not be justified in suggesting a different course only for enhancing the tax liability. The Tribunal is an independent adjudicatory authority having jurisdiction to determine the liability to pay tax. Under the Act it has no power to enhance the liability to pay tax determined by the taxing authorities. Where sufficient material exists on record the Tribunal is expected to decide the matter, on merits. It has no power to pass an order of remand only because it is of the opinion that a higher tax liability ought to be imposed although revenue has decided not to prefer any appeal against the determination of tax liability. Remand would not be permissible unless it is eminently required for justifiable reasons - The Tribunal could have either accepted the determination made by the authorities or could have varied such order but a direction of remand is not justified since all relevant materials did exist on record before it. In such circumstances the order of remand passed by the Tribunal is not found to be in consonance with statutory scheme, as has been interpreted by this Court. The Tribunal is not justified in directing remand for a fresh determination of liability by the appellate authority in the manner suggested by the Tribunal - answered in favour of the assessee.
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