- 1 - HC-KAR NC: 2025:KHC:37116-DB STRP No. 26 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND SALES TAX REVISION PETITION NO.26/2025 BETWEEN: 1. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS), DHARWAD DIVISION, HUBLI, VANIJYA THERIGE BHAVAN, NAVANAGAR, P.B.ROAD, HUBBALLI -580 025. 2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (ENF)-1, HUBBALI, VANIJYA THERIGE BHAVAN, NAVANAGAR, P.B.ROAD, HUBBALLI -580 025. …PETITIONERS (BY SRI. ADITYA VIKARAM BHAT, AGA) AND: M/S. LALJI MULJI TRANSPORT COMPANY, D.NO.117, 3RD CROSS, BEHIND WATER TANK, WARD NO.57, NEW GABBUR, P.B.ROAD, HUBBALLI- 580 025. …RESPONDENT (BY SRI. MOHAMMED MONISH SOWKAR, ADV.) THIS STRP IS FILED UNDER SEC.65(1) OF THE KARNATAKA VALUE ADDED TAX ACT, 2003 AGAINST THE JUDGMENT DATED 14.07.2023, PASSED IN STA.NO. 290/2019 AND STA NO.297/2019 Digitally signed by NANJUNDACHARI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:37116-DB STRP No. 26 of 2025 TO 301/2019 ON THE FILE OF KARNATAKA APPELLATE TRIBUNAL AT BANGALORE, ALLOWING THE APPEAL AND FILED AGAINST THE ORDER DATED 17.08.2019 PASSED IN APPEAL NOS.AP/VAT 397 TO 402/2014-15 ON THE FILE OF JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS) DHARWAD DIVISION, HUBLI, PARTLY ALLOWING THE APPEALS FOR THE TAX PERIODS AUGUST 2006 TO JANUARY 2007. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE MR. JUSTICE K. V. ARAVIND ORAL ORDER (PER: HON'BLE MR. JUSTICE K.V. ARAVIND) Heard learned Additional Government Advocate Sri.Aditya Vikram Bhat for petitioners and learned counsel Sri.Mohammed Monish Sowkar for respondent. Perused the entire petition papers. 2. This Revision Petition by the Revenue/State under Section 65 (1) of the Karnataka Value Added Tax Act, 2003 (for short, ‘KVAT Act’) challenging the order in STA.No.290/2019 and STA.No.297/2019 to - 3 - HC-KAR NC: 2025:KHC:37116-DB STRP No. 26 of 2025 STA.No.301/2019 dated 14.07.2023 passed by the Karnataka Appellate Tribunal at Bengaluru (for short, ‘the Tribunal’). 3. The Tribunal under impugned order set aside the order passed by the First Appellate Authority and remitted the matter to Appellate Authority to re-do strictly adhering to the directions of the earlier order of the Tribunal in Appeal Nos.813 to 818/2008 dated 31.12.2009. 4. Learned Additional Government Advocate Sri.Aditya Vikram Bhat appearing for the petitioners/State submits that the orders were passed strictly in conformity with the earlier directions of the Tribunal in STA.Nos.813 to 818/2008 dated 31.12.2009. It is submitted that the Tribunal without deciding the appeal on merits has remitted the matter for fresh consideration. It is submitted that the factual aspects required for adjudication of appeal were available before the Tribunal, - 4 - HC-KAR NC: 2025:KHC:37116-DB STRP No. 26 of 2025 the Tribunal being the fact finding authority, instead of remitting to Appellate Authority should have decided the appeals on merit. 5. Per contra, learned counsel Sri.Mohammed Monish Sowkar appearing for the respondent submits that the Tribunal in its earlier order dated 31.12.2009 issued certain directions which were required to be followed by the Appellate Authority while passing the order in compliance of the order of remand. The Tribunal noting that the Appellate Authority has deviated from the directions issued earlier and the order of the Appellate Authority not being in conformity with the earlier directions of the Tribunal, the Tribunal is justified in remitting the matter for fresh consideration in conformity with the earlier directions. 6. Having considered the submissions of the learned counsel appearing for the parties, we note that the Tribunal in STA.Nos.813 to 818/2008 dated 31.12.2009 - 5 - HC-KAR NC: 2025:KHC:37116-DB STRP No. 26 of 2025 remitted the matter to the Appellate Authority with certain directions and observations. The operative portion of the order reads as under: “The appeals in STA No.290/2019 and STA No.297/2019 to STA No.301/2019 are allowed. The order of the FAA is set aside. The AA is directed to issue a revised demand notice strictly adhering to the directions of Karnataka Appellate Tribunal order No.813 to 818/2008. The Registrar of the Tribunal is directed to comply with regulation 53(b) of Chapter-IX of Karnataka Appellate Tribunal Regulations 1979 by communicating this order to the persons mentioned therein. The office is directed to send back the records of the lower authorities immediately.” 7. It is not in dispute that the order dated 31.12.2009 is not taken further by the petitioner and has reached finality. In that view, the petitioners/State is - 6 - HC-KAR NC: 2025:KHC:37116-DB STRP No. 26 of 2025 bound by the earlier directions of the Tribunal in its order dated 31.12.2009. The Tribunal in the impugned order having found that the order of the Appellate Authority is not in compliance and conformity with its earlier order dated 31.12.2009, without expressing any opinion on merits has directed the Appellate Authority to re-consider the matter strictly adhering to the earlier directions. The present revision petitioner has raised questions of law on merits of the matter. 8. Considering the limited scope and grievance that arises from the impugned order, we are of the view that the Appellate Authority is bound by the earlier directions of the Tribunal and the subject matter of the appeal in the impugned order not being passed in conformity with the earlier order dated 31.12.2009, the Tribunal is justified in remitting the matter to the Appellate Authority for re-consideration. - 7 - HC-KAR NC: 2025:KHC:37116-DB STRP No. 26 of 2025 9. In the light of the above, we find no merit in the Revision Petition. Accordingly, Revision Petition stands dismissed. SD/- (S.G.PANDIT) JUDGE SD/- (K. V. ARAVIND) JUDGE NC CT:bms List No.: 1 Sl No.: 21