STATE OF KARNATAKA Vs. KAP STEEL LIMITED

JUDGEMENT

(1.) THE Revenue has come up in this revision challenging the legality and correctness of the order passed by the Karnataka Appellate Tribunal, Bangalore, dated October 26, 2006 in S. T. A. Nos. 619 -24/2001 raising the following substantial questions of law :

(2.) WHETHER the Tribunal was justified in interpreting the order passed by this court in S.T.R.P. No. 121 of 2004 dated June 29, 2006 (State of Karnataka v. Kap Steel Limited) as only a precise remand to verify the jurisdiction of the revising authority and not on the merits of the case ?

(3.) WE have perused the order passed by this court. In paras 7 and 9 this court without considering the merits of the matter has allowed the revision petition and remanded the matter to the Tribunal to consider all points. In para 7 it is held that they were not willing to go into the merits of the matter in the absence of actual finding with regard to jurisdiction of the revisional authority. Therefore, their Lordships have felt that the Tribunal was required to answer not only the question of jurisdiction but also to consider the case of the parties on the merits. In the circumstances, entire order of the Tribunal dated May 16, 2003 was set aside and the matter was remanded. In this background, we are of the view that the order of the Tribunal in the present case is without understanding the order of remand passed by this court in S.T.R.P. No. 121 of 2004 dated June 29, 2006 (State of Karnataka v. Kap Steel Limited). Due to wrong interpretation of the order of remand the Tribunal has considered the only question of jurisdiction without considering the case of the parties on merits. Only on this short ground we have to answer the questions of law in favour of the Revenue and the order passed by the Tribunal has to be set aside and the matter is required to be reconsidered by the Tribunal on merits and in accordance with law.