1997 (7) TMI 620 - HC - VAT and Sales Tax

Summary

Issues:
1. Refusal by Sales Tax Tribunal to refer questions of law to High Court.
2. Classification of rice bran oil as edible or inedible for taxation purposes.

Analysis:
The judgment of the Court pertains to a case where the Sales Tax Tribunal in Punjab dismissed a petition seeking a mandamus to refer questions of law to the High Court. The petitioner, a registered dealer under the Punjab and Central Acts, challenged an additional tax demand created by treating rice bran oil as inedible and taxing it at a higher rate. The Assessing Authority and Deputy Excise and Taxation Commissioner upheld the tax treatment. The Sales Tax Tribunal initially dismissed the appeal for non-prosecution but later dismissed it on merits. The petitioner sought to refer questions of law to the High Court, which was declined by the Tribunal citing a previous judgment.

The petitioner, upon discovering that the previous judgment had been set aside, filed a rectification application which was also dismissed. Subsequently, the petitioner filed a petition for a mandamus to refer the question of law arising from the dismissal of the rectification application. The Court noted that the judgment in the previous case had been set aside, and a new question of law arose regarding the classification of rice bran oil as edible or inedible for taxation purposes. The Court directed the Sales Tax Tribunal to refer this new question to the High Court for opinion.

The Court found that since the referable question of law had been sent for the opinion of the High Court, the writ petition seeking mandamus was rendered infructuous and was dismissed accordingly. The judgment highlights the importance of correct classification for tax purposes and the right of a petitioner to seek clarification on legal issues from the High Court when necessary.