2017 (2) TMI 1054 - HC - VAT and Sales Tax

Questions framed by the tribunal to by answered by the High Court - Tribunal jurisdiction to frame the question in reference application - question of law or facts - Held that - hen an objection was raised by the dealer that a certain question is being entertained by the Tribunal for the first time, though it is a mixed question and could not have been entertained in appeal unless a foundation was laid for the same before the Assessing Officer and the First Appellate Authority, that objection is rejected and the question is entertained. After that question is answered in the judgment on the substantive appeals, the Tribunal does not feel that the same needs to be referred further for opinion and answer of this Court. The Revenue s request to forward it and purporting to be arising out of a ground of classification of goods, therefore, was termed as not giving rise to any question of law. It is forwarded at the instance of the Revenue and the Revenue does not desire to give any assistance to the Court or seek an answer or opinion of this Court on this question. Though it is stated to be of law and termed as such by the Tribunal, we have no alternative but to return this Reference unanswered - reference returned unanswered.

Summary

Issues:
1. Sales Tax Reference at the instance of the Revenue.
2. Whether the Tribunal justified in holding "machine forgings" under specific tax entry.
3. Contradiction in the Tribunal's decision on the Reference Application.
4. Revenue's lack of desire to seek opinion from the Court on the question of law proposed by the Tribunal.

Analysis:
1. The Sales Tax Reference in this case was initiated by the Revenue, requesting the Sales Tax Tribunal to consider certain questions as questions of law arising from a previous order. The Tribunal allowed the Reference Application and referred a specific question to the High Court for decision regarding the classification of "machine forgings" under different tax entries.

2. The Tribunal entertained the question of whether "machine forgings" should be classified under a particular tax entry, which was considered a mixed question of law and fact. However, the Tribunal later contradicted itself by rejecting the Revenue's request to forward the question to the High Court, stating that it did not give rise to any question of law. This raised doubts about the Tribunal's decision-making process and the classification of goods based on interpretation of tax entries.

3. Despite the Tribunal's initial consideration of the question as a question of law, the Revenue's advocate, on instructions, informed the Court that the Revenue did not wish to seek any opinion on the proposed question. This lack of cooperation from the Revenue led to the Court returning the Reference unanswered, keeping the question of law open for future consideration in a more suitable case.

4. The Court expressed surprise at the prevailing state of affairs within the Commissionerate of Sales Tax, highlighting the importance of seeking opinions on questions of law to clarify legal interpretations and guide future cases. The decision emphasized the need for proper engagement between the parties and the Tribunal to ensure the effective resolution of legal issues and the appropriate classification of goods for tax purposes.