Broad construction of section 9(2) allowed the Commissioner to decide a Central Sales Tax liability question on merits.

Section 9(2) of the Central Sales Tax Act was construed broadly to permit use of the State sales tax assessment machinery for Central Sales Tax assessments. A narrow reading of "reference" was rejected, and proceedings under section 35 of the U.P. Sales Tax Act were treated as substantively akin to a reference because they start with an assessee's application and require the Commissioner to express an opinion on the referred point. The process was viewed as declaratory of law rather than as affecting the validity of prior assessment orders. On that basis, the Commissioner was competent to entertain and decide the application on merits, and refusal solely because the issue concerned Central Sales Tax liability was incorrect.

---

---

Issues: Whether an application seeking the Commissioner's opinion under section 35 of the U.P. Sales Tax Act could be entertained when the question related to liability under the Central Sales Tax Act, having regard to section 9(2) of the Central Sales Tax Act.

Analysis: Section 9(2) of the Central Sales Tax Act was construed broadly because Parliament intended the assessment machinery under the State sales tax law to be available for assessments under the Central Act. A narrow view of the word "reference" was rejected. Proceedings under section 35 were held to be in substance akin to a reference, since they begin with an application by the assessee, require the Commissioner to express an opinion on the point referred, and merely declare the law without affecting the validity of prior assessment orders. This was treated as comparable to a reference under the State Act, where the law is declared and effect is given later by the appropriate authority.

Conclusion: The Commissioner was competent to entertain and decide the application on merits, and his refusal on the ground that the question related to Central Sales Tax liability was wrong. The decision is in favour of the assessee.

---