Binding effect of Commissioner's tax-rate determination held to be a referable question of law under the sales tax statute.

Section 42-B of the Madhya Pradesh General Sales Tax Act, 1958 makes the Commissioner's determination of the rate of tax on disputed goods binding on the departmental authorities in proceedings under the Act, except appeals. On that basis, the High Court held that the question whether such an order binds the assessing authority was a substantial question of law arising from the Tribunal's order and could not be refused as not arising from the record. The matter was therefore directed to be referred for the Court's opinion.

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Issues: Whether the question whether an order passed by the Commissioner under section 42-B of the Madhya Pradesh General Sales Tax Act, 1958 is binding on the assessing authority arose from the Tribunal's order and was liable to be referred to the Court.

Analysis: Section 42-B empowers the Commissioner to determine the rate of tax on disputed goods and expressly provides that the order so passed is binding on the authorities referred to in section 3 in all proceedings under the Act except appeals. On that basis, the question whether such an order binds the assessing authority was a substantial question arising from the Tribunal's decision. The Court therefore found that the question could not be declined as not arising from the record.

Conclusion: The question was held to arise out of the Tribunal's order and was directed to be referred for opinion.

Ratio Decidendi: Where a statute makes the Commissioner's determination on rate of tax binding on the departmental authorities in proceedings under the Act, a question on that binding effect is a referable question of law arising from the Tribunal's order.

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