THE Government is challenging the Lands Tribunal's decision to cut the rateable value of China Light and Power's Castle Peak power station from $2.95 billion to $2,02 billion. It was the biggest monetary appeal against a rating valuation to go before the tribunal when it was heard in January. The Commissioner of Rating and Valuation valued the properties at $3.25 billion but the CLP valued them at $1.37 billion for the year 1990-1991. During the hearing, the commission reduced the valuation to $2.95 billion, but after hearing experts for both parties, the Lands Tribunal ruled that the value should be reduced to $2 billion. CLP asked the tribunal to review the decision, but at a hearing in August, the Commissioner succeeded in increasing the valuation by $20 million. Yesterday the Commissioner submitted to the Court of Appeal that the tribunal had erred in law in reaching its conclusion. The commission is also challenging the tribunal's decision to hear a review of its decision while an appeal by the Court of Appeal was outstanding. CLP is cross-appealing. The hearing, which is expected to last five days, continues today before Mr Justice Power, Mr Justice Mortimer and Mr Justice Godfrey.