High Court partially allows State's reference application under section 44(2) of Sales Tax Act.

The High Court partially allowed the State's application for reference under section 44(2) of the M. P. General Sales Tax Act, 1958. The Court directed the Tribunal to refer the question concerning the validity of an eligibility certificate issued by District Industry, Dewas. However, the Court found that the question regarding the liability for entry tax on plant and machinery purchased after commencing business did not require a reference as it had been previously addressed. The Tribunal was instructed to prepare the statement of the case on the referable question within three months, with no costs awarded.

---

---

Issues:
1. Application under section 44(2) of the M. P. General Sales Tax Act, 1958 for reference to High Court.
2. Questions regarding the validity of eligibility certificate and entry tax liability.

Analysis:
The State made an application under section 44(2) of the M. P. General Sales Tax Act, 1958 seeking reference to the High Court after their application under section 44(1) was dismissed. The questions raised by the State for reference were related to the validity of an eligibility certificate and the liability for entry tax. The State contended that these questions arose from a Tribunal order and should be referred to the High Court for resolution under section 44(1) of the Act.

The first question raised was whether the Tribunal was correct in holding that the validity of an eligibility certificate issued by District Industry, Dewas should be effective from the date of the first purchase instead of the date of the registration certificate. The State argued that the validity date of the registration certificate was a mandatory requirement as per a notification. The High Court found this question to be referable and directed the Tribunal to send a reference on this issue.

The second question pertained to whether plant and machinery, along with building material purchased after commencing business, should be considered "incidental goods" under the Entry Tax Act and thus not liable for entry tax. Both parties agreed that this question had already been answered by the High Court in previous decisions. As such, the High Court deemed this question as already resolved and not requiring a reference.

After considering the arguments and perusing the case records, the High Court partially allowed the application. It directed the Tribunal to send a reference to the High Court only on the first question regarding the validity of the eligibility certificate. The High Court instructed the Tribunal to prepare the statement of the case within three months for answering the referred question. No costs were awarded in this matter.

---