2004 (7) TMI 629 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the Madhya Pradesh General Sales Tax Act, 1958 and the Madhya Pradesh Commercial Tax Act, 1994.
2. Refusal of the Tribunal to make a reference on a question of law.
3. Examination of the proposed question by the High Court.
4. Direction to the Tribunal to refer the case to the High Court for a detailed examination.

Analysis:
1. The judgment addresses applications under section 44(2) of the Madhya Pradesh General Sales Tax Act, 1958, and section 70(2) of the Madhya Pradesh Commercial Tax Act, 1994, where the State sought a reference on a question. The Tribunal had declined to make a reference based on the ground that the issue had been answered by the High Court previously. The High Court reviewed the controversy and decided that due to subsequent amendments in the State Act and the significance of the question of law, it should be examined comprehensively by the court.

2. The Tribunal's refusal to make a reference was based on the belief that the issue had already been addressed by the High Court. However, the High Court, after detailed examination, concluded that the question proposed was of significant importance and needed to be reexamined, especially in light of the amendments made in certain sections of the State Act. The High Court found it necessary for the Tribunal to refer the case to the court for a thorough analysis.

3. The High Court determined that the question proposed by the State was a pure question of law with implications for numerous cases involving the interpretation of the definition of incidental goods. Given the complexity and importance of the issue, the High Court decided that the question needed to be referred to the court for a detailed examination and a decision on its merits. The High Court directed the Tribunal to refer the case under the relevant sections of the Acts for further review.

4. In conclusion, the High Court allowed the applications, directing the Tribunal (now known as the M.P. Commercial Tax Appellate Board) to refer the case to the court for examination. The specific question related to the payment of entry tax on the purchase of plant and machinery post a certain date was to be addressed in detail by the court. The High Court instructed the Appellate Board to submit the statement of the case within a specified timeline, enabling a comprehensive review of the issue.