Reference under sales tax law cannot be refused once the precedent relied on has been overruled by the Supreme Court.

Once the precedent relied on by the Tribunal had been overruled by the Supreme Court, the foundation for refusing a reference under section 42(2) of the Haryana General Sales Tax Act, 1973 no longer existed. The Tribunal's duty to refer questions of law therefore revived, and it was required to draw up a statement of case and place the questions before the High Court for opinion. The refusal to refer was held unsustainable, and the Tribunal was directed to make the reference.

---

---

Issues: Whether the Tribunal was justified in refusing to refer the questions of law under section 42(2) of the Haryana General Sales Tax Act, 1973 when the precedent on which it had relied had already been overruled by the Supreme Court.

Analysis: The Tribunal had declined reference mainly on the basis of a Bombay High Court decision. It was brought to notice that the said decision had been reversed by the Supreme Court. Once the very foundation of the Tribunal's refusal had disappeared, the refusal to make a reference could not be sustained. In such circumstances, the statutory duty to refer the questions arose, and the Tribunal ought to have drawn up a statement of case and referred the questions for opinion.

Conclusion: The refusal to refer the questions of law was not sustainable, and the Tribunal was directed to make the reference.

---