1979 (11) TMI 245 - HC - VAT and Sales Tax

High Court dismisses reference application, emphasizes need for questions of law to be raised at Tribunal

The High Court dismissed the reference application, upholding the decision of the Board of Revenue. The Court emphasized that questions of law must be ... - Issues:1. Interpretation of inter-State sale in the context of movement of goods from one state to another.2. Determination of the point at which an inter-State sale terminates.3. Legality of realizing sales tax at a depot without intra-State sales.4. Correct point and dealer for levying sales tax in a transaction.Analysis:The case involved a reference application under section 15(3A) of the Rajasthan Sales Tax Act, 1954. The assessing authority contended that the assessee was liable for sales tax on the hydrogenated oil purchased from a firm in Gujarat, as the first sale in Rajasthan occurred at the hands of the assessee. The Deputy Commissioner remanded the matter for redetermination of the sale price. The Board of Revenue accepted the revision petition based on the revenue's concession that if tax was already realized from the seller's depot in Udaipur, it should not be collected again from the assessee. The assessing authority sought a reference to the High Court, which was not disposed of within the prescribed period, leading to the present reference application.The questions raised for reference included the nature of the movement of goods as an inter-State sale, the termination point of an inter-State sale, the legality of realizing sales tax at a depot without intra-State sales, and the correct point for levying sales tax. However, the High Court noted that the Board of Revenue's order was based solely on the revenue's concession, without any questions being decided. Citing precedent, the Court emphasized that a question of law must be raised before and considered by the Tribunal to be deemed arising out of its order. Since the questions were neither raised nor decided by the Board of Revenue, the High Court found no grounds for a reference.The High Court further highlighted that the assessing authority had already made a concession before the Board of Revenue, and thus could not be aggrieved by the Board's order. The Court dismissed the reference application, stating that the parties could raise relevant questions before the assessing authority as permitted by law. Ultimately, the High Court found no merit in the reference application and dismissed it, upholding the decision of the Board of Revenue.In conclusion, the High Court's judgment focused on the procedural aspects of raising questions of law before the appropriate authorities for consideration. The Court emphasized the importance of issues being raised, argued, and decided by the relevant tribunals before seeking references to higher courts, ensuring a proper legal process is followed in tax matters.