Reference of questions of law maintained where Tribunal's order covered service-related food charges and refund issues.

The High Court held that the Revenue's application for reference under section 44(2) was maintainable because the proposed questions of law arose from the Tribunal's order. It accepted that the issues concerning whether food charges were incidental to service and whether tax recovered from customers was refundable were properly referable questions of law. Relying on the governing Supreme Court authority on reference of legal questions, the Court directed the Tribunal to refer both questions to the High Court.

---

---

Issues: Whether the Revenue's application for reference under section 44(2) was maintainable and whether the questions of law proposed by it arose from the order of the Tribunal.

Analysis: The Tribunal had decided the assessee's tax liability and refund issue, and the High Court found that the proposed questions, including the treatment of food charges as incidental to service and the refund of tax recovered from customers, did arise out of the Tribunal's order. The Court also accepted that the second question could be entertained in view of the governing Supreme Court authority on reference of questions of law.

Conclusion: The application for calling a reference was allowed and the Tribunal was directed to refer the two questions of law to the High Court.

---