Single-member sales tax appeal jurisdiction fails where disputed tax exceeds the statutory limit and liability remains undecided.

Under section 10(10)(a) of the U.P. Sales Tax Act, a second appeal from an Assistant Commissioner (Judicial) is to be heard by a single member only where the tax in dispute does not exceed Rs. 5,000. Where the assessed liability was Rs. 11,500 and the appellate order merely required further enquiry without finally deciding liability, the dispute exceeded the statutory limit. A single-member Bench was therefore not competent to hear the appeal, and the Tribunal's order was held unsustainable for want of proper constitution.

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Issues: Whether the Sales Tax Tribunal could hear the second appeal with a single-member Bench when the tax in dispute exceeded Rs. 5,000.

Analysis: Under section 10(10)(a) of the U.P. Sales Tax Act, an appeal from the order of the appellate authority under section 9 is to be disposed of by a Bench of one member only where the order is passed by an Assistant Commissioner (Judicial) and the amount of tax in dispute does not exceed Rs. 5,000. In the present matter, the assessed tax liability was Rs. 11,500, and the appellate order merely directed further enquiry without deciding the dealer's liability on merits. The amount in dispute before the Tribunal therefore exceeded the statutory limit for single-member disposal, and the Tribunal was not competent to decide the appeal by a single member.

Conclusion: The Tribunal's order was vitiated for want of proper constitution of the Bench and could not be sustained.

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