Questions of fact, not law, barred a tax reference over concealment and penalty under the sales tax statute.

A reference under section 44(2) of the M.P. General Sales Tax Act, 1958 was held unwarranted because the proposed questions were purely factual, not questions of law. The dispute arose from a penalty for filing a false return and concealing turnover, and the authorities had already found that concealment was established on the surrounding materials, including the timing of the return after information from the supplier. The Tribunal's view that the penalty was not excessive, having regard to the maximum permissible penalty and the lenient approach adopted, involved no debatable legal issue. The request for reference was therefore rightly refused.

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Issues: Whether the questions sought to be referred under section 44(2) of the M.P. General Sales Tax Act, 1958 arose as questions of law or were purely questions of fact, so as to justify calling for a reference from the Sales Tax Tribunal.

Analysis: The application arose from a penalty imposed under section 43(1) for filing a false return and concealing turnover. The assessment and the surrounding circumstances showed that the return was filed after information was obtained from the concerned supplier, and the Tribunal had found that the concealment stood established. The Tribunal also took the view that the penalty was not excessive in view of the maximum permissible penalty and the lenient approach adopted in the case. On these facts, the challenge did not raise any debatable question of law; it only invited reconsideration of factual findings already recorded by the authorities below.

Conclusion: The questions proposed by the assessee were purely questions of fact and not questions of law. The request to call for a reference was rightly refused.

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