1987 (6) TMI 389 - HC - VAT and Sales Tax

Summary

Issues:
Whether the Tribunal has the power to grant stay in appeals before it pertaining to assessment years falling prior to 1st July, 1985.

Analysis:
The judgment of the High Court of Andhra Pradesh addressed the limited question of whether the Tribunal has the authority to grant stay in appeals related to assessment years before 1st July, 1985. The Court referred to provisions of the Act pre and post-Amendment Act 18 of 1985. Before the amendment, the Tribunal granted stay as an incidental power, but sub-section (6) introduced by the Amendment Act restricted the Tribunal's power to grant stay in certain cases. The Court analyzed the new sub-sections and concluded that the Tribunal had been stripped of its power to grant stay pending appeals. The retroactive effect of this deprivation was the main issue at hand.

The Court considered arguments from both sides, with the Government Pleader asserting that the power to grant stay was procedural and not a vested right, while the respondents' counsel argued that the power was not merely procedural and should apply to proceedings pre-1st July, 1985. The Court agreed with the respondents, emphasizing that the Tribunal's power to grant stay was an incidental aspect of its substantive power to hear appeals. The Court rejected the notion that the incidental power was retrospectively removed, stating that such intention must be clear in the Amendment Act. The Court highlighted the quasi-judicial nature of the Tribunal and leaned towards preserving its power to grant stay, especially when the language of the amendment was ambiguous on retrospectivity.

Ultimately, the High Court held that the Tribunal's incidental power to grant stay remained intact for appeals concerning assessment years pre-1st July, 1985, and provisional assessments for months before that date. The writ petitions were dismissed with no costs awarded, affirming the Tribunal's authority to grant stay in relevant cases.

This judgment clarifies the Tribunal's power to grant stay in appeals related to assessment years preceding 1st July, 1985, emphasizing the importance of the Tribunal's incidental power in the appeal process. The Court's analysis focused on the substantive and incidental powers of the Tribunal, highlighting the need for clarity in legislative language regarding retrospective effects on such powers.