Although Bannermans have pointed out a loophole in the law, they themselves suggest that it can be fixed with a by-law. generally speaking the government is keen for individual strata schemes to govern their own circumstances this way, rather than by issuing laws that tend to be blunt instruments (as so accurately described by Kaindub).
Personally, I can’t see how your committee has any conflict over this. An owner has installed a floor and the result is intolerable noise. The downstairs neighbour’s right to the peaceful enjoyment of their lot over-rides the other neighbour’s desire to install cheap flooring.
The committee needs to get on to this and support the afflicted neighbour and pass a by-law to cover future incidents. The issue is noise, not the materials on the floor. The Tribunal is likely to order that the noise issue be fixed, rather than specify any kind of flooring … and that’s as it should be.
The committee doesn’t have to see both sides of the story. They are not adjudicators. The law is simple and the committee’s job is to protect and support people who have suffered because by-laws and/or strata laws have been breached.