Transfer of appeal requires a pending appeal and recorded reasons; mechanical clubbing of unrelated matters is arbitrary.

Rule 33(1) of the Andhra Pradesh General Sales Tax Rules, 1957 permits the Commissioner to transfer only a pending appeal, and only for reasons recorded in writing. Because the appeal had not yet been filed when the first transfer order was made, there was no appeal capable of transfer, making the order without authority of law. The later endorsement did not cure the defect, as it gave no germane reason for disturbing the territorial appellate forum and reflected mechanical clubbing of unrelated matters. The transfer orders were therefore arbitrary, unsupported by valid reasons, and unsustainable.

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Issues: Whether the Commissioner could transfer an appeal that was not yet pending before the original appellate authority, and whether the impugned transfer orders were arbitrary and unsupported by valid reasons under rule 33 of the Andhra Pradesh General Sales Tax Rules, 1957.

Analysis: The proviso to rule 33(1) authorises the Commissioner to transfer only a pending appeal from one Appellate Deputy Commissioner to another, and that power has to be exercised for reasons recorded in writing. On the facts, the appeal had not been filed when the first transfer order was issued, so there was no pending appeal capable of transfer. The later endorsement did not supply any valid basis for the petitioner's case, since it simultaneously clarified that the consignment-sales allegations did not concern the petitioner's APGST assessment, yet sought to keep the earlier transfer undisturbed. The absence of germane reasons and the mechanical clubbing of the petitioner's appeal with other dealers' matters showed arbitrariness and non-application of mind.

Conclusion: The transfer orders were without authority of law and unsustainable, and the challenge succeeded.

Final Conclusion: The petitioner's appeal had to remain before the territorial appellate authority, though the Commissioner was left free to exercise the transfer power afresh in accordance with law on valid grounds.

Ratio Decidendi: A statutory power to transfer an appeal can be exercised only in relation to an appeal already pending before the designated authority, and the transfer must rest on recorded, relevant and non-arbitrary reasons.

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