2001 (11) TMI 992 - HC - VAT and Sales Tax

Summary

Issues:
1. Amendment of question proposed for reference by the Tribunal under the Gujarat Sales Tax Act, 1969.
2. Interpretation of legal controversy and question of law under section 69(2) of the Act.
3. Comparison of relevant entries in different cases to determine applicability.
4. Consideration of legal precedents and judgments to support respective contentions.
5. Decision on whether the question of law proposed in the amended reference applications arises from the Tribunal's order.

Issue 1: Amendment of Reference Question
The Court considered the amendment of the question proposed for reference by the Tribunal under the Gujarat Sales Tax Act, 1969. Initially, the State of Gujarat sought to amend the question to accurately reflect the legal controversy regarding the applicability of the correct entry concerning the goods in question. The Court granted the draft amendment, emphasizing that the legal controversy raised before the Tribunal must be correctly reflected in the proposed question, even if the language differs between the reference applications under different subsections.

Issue 2: Interpretation of Legal Controversy
The Court clarified that the question of law to be considered under section 69(2) of the Sales Tax Act must arise from the Tribunal's order. It highlighted that the proposed question in the amended reference applications correctly captured the controversy regarding whether the goods in question fell within a specific entry of the Act. The Court emphasized that the legal controversy must be accurately reflected in the question proposed for reference.

Issue 3: Comparison of Relevant Entries
The Court examined the relevant entries in different cases to determine their similarity or dissimilarity. It noted that the entry in the instant case concerning cardboard boxes and cartons differed from entries in previous cases. The Court considered the amendment made in 1993, which indicated that tetrapack materials were not included in the packing materials under the relevant entry at the time of the case.

Issue 4: Consideration of Legal Precedents
Both parties relied on legal precedents and judgments to support their contentions. The Advocate-General cited decisions from the Madhya Pradesh High Court favoring the Revenue in similar cases. Additionally, reference was made to the Supreme Court decision allowing redrafting of questions to reflect the correct controversy between parties. On the other hand, the respondent's counsel referenced decisions supporting the Tribunal's decision based on previous Supreme Court rulings and the nature of the clarificatory amendment made by the Legislature.

Issue 5: Decision on Question of Law
The Court, focusing on whether a question of law arose from the Tribunal's order, found that the question proposed in the amended reference applications did indeed arise from the Tribunal's decision. Consequently, the Court allowed the applications, directing the Gujarat Sales Tax Tribunal to refer the specific question of law to the Court for consideration. The rule was made absolute with no order as to costs, indicating the final decision on the matter.

In conclusion, the Gujarat High Court addressed various issues related to amending the reference question, interpreting legal controversies, comparing relevant entries, considering legal precedents, and deciding on the question of law arising from the Tribunal's order under the Gujarat Sales Tax Act, 1969. The detailed analysis provided insight into the Court's considerations and the ultimate decision to allow the applications and direct the Tribunal to refer the specific question of law for further examination.