1985 (8) TMI 356 - HC - VAT and Sales Tax

Summary

Issues:
1. Maintainability of the application for reference under section 15(2) of the Rajasthan Sales Tax Act, 1954 due to the failure of the Board of Revenue to pass an order within the prescribed period.

Analysis:
The judgment of the High Court dealt with the issue of maintainability of an application for reference under section 15(2) of the Rajasthan Sales Tax Act, 1954. The Court noted that the Board of Revenue failed to pass an order within the statutory period of 180 days as required by section 15(1) of the Act. The application for reference was filed by the assessing authority under section 15(1) on September 21, 1978, and the Board of Revenue did not pass any order until after the expiry of the 180-day period in March 1979. The Court referenced sub-section (3A) of section 15, which stated that if the Board fails to dispose of the application within the prescribed time, it shall not pass any order thereafter. The applicant would then have 90 days from the expiration of the prescribed time to apply to the High Court for calling the reference. In this case, the Board of Revenue passed an order on the application under section 15(1) on April 16, 1979, beyond the 180-day period, rendering the subsequent application under section 15(2) incompetent.

The Court considered the argument presented by the department that an earlier application under sub-section (3A) of section 15 was filed but later withdrawn after the Board of Revenue decided on the initial application under section 15(1). However, the Court emphasized that for the present application under section 15(2) to be maintainable, the Board of Revenue must have passed an order on the section 15(1) application within the 180-day period. Since the Board's order was issued after the expiry of the statutory period, it lacked jurisdiction, making the application under section 15(2) not maintainable. Consequently, the Court dismissed the application, affirming that the Board's order was without jurisdiction, and no reference under section 15(2) could be based on it.

In conclusion, the High Court held that the application for reference under section 15(2) of the Rajasthan Sales Tax Act, 1954 was not maintainable due to the Board of Revenue passing an order on the section 15(1) application after the expiry of the 180-day period. The Court emphasized the statutory requirement for timely action by the Board and ruled that the subsequent application under section 15(2) was incompetent. The Court's decision was based on the lack of jurisdiction of the Board of Revenue to pass an order beyond the prescribed period, rendering the reference application invalid.