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2023 (2) TMI 1040 - HC - VAT and Sales TaxCorrectness of remanding the case - Entitlement to claim benefit of customs duty - denial on the ground that there were no records to show re-export of repaired units between 2005 and 2007 - HELD THAT:- No doubt the impugned order is a remand order but the matter is remitted to the file of the Assessing Officer for passing fresh re-assessment order under Section 39(2) of the KVAT Act. KAT has noticed assessee’s contention in para 6.1 of the impugned order. The assessee has pleaded before the KAT that the KVAT authority was relying solely on the show cause notice issued by the DRI Authority in a different set of proceedings under different legislation - Unless an authority vested with a power to impose tax and the KVAT authorities in this case, have had sufficient material based on its own investigation, proposition and confirmation of such proposed tax would be untenable in law. It is not in dispute that reliance has been placed on the show cause notice issued by the DRI authorities and the said ground has been noticed by the KAT. In our view, the KAT was required to return a finding on the said ground. It is assessee’s specific case that the UPS machines exported abroad were imported without any consideration for the purpose of repair and refurbishing. According to the assessee, after repair, machines have been exported. Therefore, there needs to be an appropriate adjudication not only with regard to the factual matrix, but also on the questions of law. In the circumstances, KAT was duty bound to return its findings on the main ground urged on behalf of the petitioner. Matter is remitted to the file of the KAT to re-examine the principal contention urged by the assessee and to pass fresh orders in accordance with law - Revision petition allowed.
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