Reference of question of law cannot be refused merely because the answer seems settled or obvious

A Tribunal cannot refuse to state a case merely because it considers the legal answer settled or obvious once a question of law arises from its order. The statutory duty is triggered by the existence of a referable question, and the Tribunal is not entitled to decide the merits of that question at the reference stage. If a question of law emerges from the order, the proper course is to state the case and refer it to the High Court; refusal on the ground that existing authority already answers the point is not justified. The High Court may compel a reference where that duty is wrongly declined.

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Issues: Whether the Board of Revenue was justified in refusing to state a case and refer the question of law arising from its order, on the ground that the legal position was settled and no referable question survived.

Analysis: The right to require a reference arises when a question of law emerges from the Tribunal's order. The Tribunal must first decide whether such a question exists; once it does, refusal to refer cannot rest merely on the view that the answer appears clear or that the point may be answered by existing authority. The power to refuse a reference is not a power to finally determine the legal issue itself, and the correctness of the Tribunal's view on the merits is irrelevant to the statutory duty to state the case. The availability of a later decision on the point does not justify earlier refusal if, at the time of refusal, a question of law had arisen from the order. Where the Tribunal declines to refer despite the existence of a question of law, the High Court may compel a reference.

Conclusion: The refusal to make a reference was not justified, and the Board of Revenue was rightly directed to state the case and refer the question of law.

Ratio Decidendi: If a question of law arises out of the Tribunal's order, the Tribunal cannot refuse a reference merely because it considers the answer to be settled or self-evident; its duty is to state the case and refer the question, leaving the legal determination to the High Court.

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