Right to withdraw a pre-hearing sales tax appeal limits appellate power to insist on continuation for possible enhancement.

An assessee who files an appeal under the Orissa Sales Tax Act may withdraw it before it is heard, because the statutory scheme contains no express bar on withdrawal. The appellate authority's power to confirm, reduce, enhance or annul assessment arises only while disposing of an appeal and cannot be used to compel the appeal to continue merely because enhancement might be considered. The requirement of reasonable opportunity before enhancement does not authorise refusal of withdrawal when no enhancement proceedings have yet been initiated. The assessee therefore retains the right to withdraw the appeal at the pre-hearing stage.

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Issues: Whether an assessee who has filed an appeal under section 23(1) of the Orissa Sales Tax Act can withdraw the appeal before it is heard, and whether the appellate authority can refuse such withdrawal on the ground that enhancement of assessment may be considered.

Analysis: The appellate power to confirm, reduce, enhance or annul assessment under section 23(2) operates only in the course of disposing of an appeal and is subject to the procedure prescribed by the Act and the Rules. The statutory scheme does not contain any express embargo on withdrawal of an appeal by the assessee. The rules dealing with appeal, summary rejection, hearing, and enhancement do not create a right in the appellate authority to compel continuation of an appeal merely because enhancement may be possible. The requirement of a reasonable opportunity before enhancement under rule 50(3) does not authorise refusal of withdrawal at the stage when no enhancement proceedings have yet been initiated.

Conclusion: The assessee had the right to withdraw the appeal before hearing, and the appellate authority had no jurisdiction to refuse withdrawal on the ground of possible enhancement of assessment.

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