1965 (9) TMI 39 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the Tribunal was required to decide on the enhancement of tax pressed by the applicant.
2. Whether the non-applicant's second appeal should have been dismissed as not pressed.

Analysis:

Issue 1:
The Tribunal made a reference under section 44(1) of the Madhya Pradesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax. The questions of law raised were whether the Tribunal was obligated to decide on the enhancement of tax pressed by the applicant and whether the non-applicant's second appeal should have been dismissed as not pressed. The Tribunal allowed the assessee to withdraw the appeal without passing any order on the application for enhancement of the assessment. The court held that the Tribunal failed to consider that it could only entertain the application for enhancement while the appeal was pending. The power to enhance tax is a duty imposed on the Tribunal to ascertain the true assessment and cannot be neglected due to the assessee's desire to withdraw the appeal.

Issue 2:
The court addressed the argument that the case was governed by the Central Provinces and Berar Sales Tax Act, 1947, which did not provide for a second appeal at the time. However, the court declined to express an opinion on this matter as it was not referred to them. The court directed that if the issue is raised before the Tribunal, it can be considered there. The court answered both questions in the affirmative, stating that the Commissioner would be awarded costs for the reference, and the assessee would bear their own costs along with a hearing fee.

This judgment underscores the Tribunal's duty to consider applications for enhancement of tax alongside pending appeals, emphasizing that an assessee cannot withdraw an appeal to prevent the enhancement of tax. The court also highlighted the importance of fulfilling public duties in tax assessments, even if the assessee seeks to withdraw the appeal.