Statutory reference on purchase tax liability required where special sugarcane law and general sales tax law overlap.

A controversy over purchase tax liability under the general sales tax law, despite tax already paid under the special sugarcane enactment, raised a question of law requiring reference. Because the issue involved the interaction between the special sugarcane legislation and the general tax statute, and the statutory conditions for reference were met, the Tribunal was directed to draw up a statement of case and refer the formulated question to the High Court. The merits of the tax liability were left to be determined in the reference proceedings.

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Issues: Whether the Tribunal should be directed to draw up a statement of case and refer the question of law concerning liability to purchase tax under the general sales tax law despite payment of purchase tax under the special sugarcane enactment.

Analysis: The petitioner had already paid purchase tax on sugarcane under the special sugarcane legislation applicable in Haryana, while the revisional authority nevertheless created additional liability under the general sales tax enactment. The question raised was treated as one requiring consideration in the light of the earlier decision of the Supreme Court and the orders of the authorities below. Since the controversy involved a legal issue on the interaction between the special enactment and the general tax law, the matter was considered fit for reference under the statutory reference provision.

Conclusion: The Tribunal was required to refer the formulated question of law to the High Court, and the petition was allowed.

Final Conclusion: The proceeding resulted in a direction to make a statutory reference on the identified question of law, leaving the merits of the tax liability for determination in the reference proceedings.

Ratio Decidendi: Where a controversy raises a determinative question of law on the interaction between a special enactment and the general tax law, and the statutory conditions for reference are satisfied, the Tribunal must state the case and refer the question to the High Court.

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