Appellate power limited to grounds in appeal; tribunal cannot decide unchallenged issues or make adverse findings beyond scope.

The Tribunal's appellate power under section 39 of the Haryana General Sales Tax Act, 1973 was confined to the grounds raised in the appeal, and it could not travel beyond matters not challenged by the department or record adverse findings on issues outside the appeal. Although the provision allows the Tribunal to pass such order as it considers just and proper, that discretion does not authorise suo motu examination of unappealed issues. Writ jurisdiction under article 226 was treated as available to correct this legal error. The Tribunal's order was set aside and the matter remanded for fresh decision on merits after hearing the parties.

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Issues: Whether the Sales Tax Tribunal could travel beyond the grounds raised in the appeal and make adverse observations on matters not challenged by the department, and whether its order required interference under writ jurisdiction.

Analysis: The appellate power under section 39 of the Haryana General Sales Tax Act, 1973 was held to be confined to the matters raised before the Tribunal in the appeal. Although the provision empowers the Tribunal to pass such order as it deems just and proper, that jurisdiction does not extend to suo motu examination of issues not carried in appeal or challenged by the department. Since the department had not appealed against the appellate authority's order, the Tribunal could not have gone into those matters or recorded adverse findings beyond the scope of the appeal. The Court also treated writ jurisdiction under article 226 as available to correct such legal error.

Conclusion: The Tribunal's order was set aside and the matter was remanded to it for fresh decision on merits after hearing the parties.

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