1968 (2) TMI 103 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the scope of the order of the Supreme Court in C.M.P. No. 1587 of 1967.
2. Effect of the Supreme Court's order dated 18th July, 1967, on the judgment in Larsen and Toubro Limited v. Joint Commercial Tax Officer.
3. Construing the stay order of the Supreme Court in a broader context.

Analysis:
1. The judgment involves the interpretation of the scope of the order of the Supreme Court in C.M.P. No. 1587 of 1967. The Advocate-General requested the High Court to make an order interpreting the Supreme Court's order. The Supreme Court had granted an interim stay on the operation of a judgment by the High Court, pending final disposal of an appeal. The High Court, in Writ Petition No. 3909 of 1967, held that the scope of the Supreme Court's order was limited to the parties involved in the stay petition and did not extend to other assessees or parties not before the Supreme Court.

2. The effect of the Supreme Court's order dated 18th July, 1967, on the judgment in Larsen and Toubro Limited v. Joint Commercial Tax Officer was analyzed by the High Court. The High Court held that the Supreme Court's stay order operated only between the parties to the stay petition and the appeal. The High Court emphasized that the operation of the judgment in Larsen and Toubro Limited v. Joint Commercial Tax Officer was not suspended for other assessees or parties not involved in the appeal pending before the Supreme Court.

3. The High Court further discussed the broader context of construing the stay order of the Supreme Court. Despite the lack of explicit limitations in the stay order, the High Court opined that stay orders are generally confined to the parties before the Court. The High Court emphasized that the stay order was based on an undertaking given by the Advocate-General for the State, regarding the non-collection of tax from the respondent during the appeal process. The High Court concluded that the judgment in Larsen and Toubro Limited v. Joint Commercial Tax Officer must be followed by the revenue in the State concerning assessees or parties not involved in the appeal pending before the Supreme Court.