1996 (3) TMI 481 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to the legality of the order passed by the Division Bench of Orissa Sales Tax Tribunal regarding restoration of an appeal decided ex parte on merits.

Detailed Analysis:

Issue 1: The Tribunal's power to restore an appeal decided ex parte on merits.
- The petitioner challenged the Tribunal's order rejecting the restoration application for the appeal, arguing that the Tribunal has the power to restore such appeals.
- The Tribunal rejected the restoration application, stating that there was no provision in the Orissa Sales Tax Act and Rules allowing restoration of an appeal decided ex parte on merits.
- The petitioner cited decisions of the Full Bench of the Tribunal in support of restoration, but the Tribunal did not consider these decisions.
- The High Court found that the Tribunal's order showed a lack of application of mind and judicial indiscipline. It emphasized that the Tribunal has all powers conferred by the statute and implied powers necessary to make the grant effective.
- The High Court referred to legal principles stating that an express grant of statutory power implies the authority to use all reasonable means to make the grant effective.
- The High Court cited precedents to establish that the Tribunal has the power to restore appeals decided ex parte on merits, vacating the Tribunal's order and directing a fresh consideration by the Tribunal.

Issue 2: Judicial discipline and continuity in decision-making.
- The High Court criticized the Tribunal for not considering previous decisions of the Full Bench and the decision of the High Court in a similar matter.
- Emphasized the importance of continuity, certainty, and predictability in judicial decisions, especially when an earlier decision by a larger Bench exists.
- Reiterated the principle that an express grant of statutory power carries with it the authority to use all reasonable means to make the grant effective.

Issue 3: Displeasure over the conduct of Tribunal members.
- The High Court expressed displeasure over the conduct of the two Tribunal members for their handling of the restoration application.
- Stressed the importance of competent and efficient adjudicators in Tribunals for the proper adjudication of cases and the fate of litigants.

Conclusion:
The High Court allowed the writ application, vacated the Tribunal's order, and directed a fresh consideration by the Tribunal regarding the restoration of the appeal. Additionally, the Chairman of the Tribunal was instructed to convey the High Court's displeasure over the conduct of the two Tribunal members. No costs were awarded in the matter.