Pendency of reference does not suspend assessment proceedings where the statute keeps the order operative and payable.

Pendency of a reference under section 23 of the C. P. and Berar Sales Tax Act, 1947 does not, by itself, suspend the operative effect of the order under challenge or bar further proceedings. The statute made the tax payable notwithstanding an application or reference, so a remand order continued to operate and the Sales Tax Officer could lawfully resume assessment in line with the Commissioner's directions. The Court noted that judicial propriety favoured awaiting the reference, but that did not remove jurisdiction. The assessment was therefore not without jurisdiction and the challenge failed.

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Issues: Whether the Sales Tax Officer had jurisdiction to resume and complete assessment proceedings during the pendency of a reference under section 23 of the C. P. and Berar Sales Tax Act, 1947, and whether the assessment made during that period was liable to be quashed.

Analysis: The pendency of a reference under section 23 does not, by itself, place the order under challenge in abeyance or operate as a stay of further proceedings. Section 23(7) expressly indicates that the tax ordered to be paid remains payable notwithstanding an application under section 23(1) or any reference made in consequence thereof. On that statutory scheme, the order of remand continued to operate, and the Sales Tax Officer could lawfully recommence assessment proceedings in accordance with the Commissioner's directions. Although the Court found that judicial propriety required the authorities to await the decision on the reference, that consideration did not deprive the officer of jurisdiction to act.

Conclusion: The assessment was not without jurisdiction, and the challenge to it failed.

Ratio Decidendi: Unless the statute expressly provides otherwise, the filing or pendency of a reference does not suspend the operation of the order under reference, and proceedings taken under that operative order remain valid if the authority otherwise has jurisdiction.

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