1993 (2) TMI 306 - HC - VAT and Sales Tax

Summary

Issues:
1. Application under section 22 of the U.P. Sales Tax Act, 1948 for recalling an ex parte judgment by the Sales Tax Tribunal.
2. Difference of opinion between the Departmental Member and the Judicial Member of the Tribunal.
3. Interpretation of the Tribunal's inherent powers to set aside ex parte orders.
4. Consideration of whether it was a fit case to exercise inherent powers.

Analysis:
The judgment involves the consideration of an application under section 22 of the U.P. Sales Tax Act, 1948, seeking to recall an ex parte judgment by the Sales Tax Tribunal. The applicant's counsel sought adjournments due to difficulties in locating the partners of the closed firm, and on the final date, he was unable to appear due to illness. The Tribunal, comprising a Departmental Member and a Judicial Member, had a difference of opinion on whether the application should be allowed. The Judicial Member believed that since no mistake was pointed out in the judgment, section 22 was not applicable, though acknowledging the Tribunal's inherent power to set aside ex parte orders.

The applicant argued that the Tribunal has inherent powers to ensure justice between parties, citing precedents supporting the idea that the Tribunal should provide a fair opportunity for both sides to be heard. The Tribunal's inherent power to set aside ex parte orders was not disputed, leading to the central question of whether this case warranted the exercise of such powers. The applicant's earnest efforts to locate the partners and the counsel's illness on the final adjournment date were considered justifiable reasons for absence.

Consequently, the revision was allowed, and the impugned orders of the Sales Tax Tribunal were set aside. The matter was remanded back to the Tribunal for a fresh hearing on merits, with directions for both parties to appear on a specified date. Failure to appear would result in the automatic vacation of the order, with the Tribunal having discretion on granting adjournments. The revision was disposed of at the admission stage, with the petition being allowed.