Uncommunicated tax orders have no legal effect; the High Court upheld the Full Bench reference on the facts.

A judicial or quasi-judicial tax order acquires legal effect only on formal pronouncement or delivery in the manner required by law; an undisclosed or uncommunicated order is non est. Applying that principle, the High Court treated the earlier appellate order as ineffective until properly communicated. On the jurisdictional challenge to the reference of the appeals to the Full Bench, the Court accepted the procedural course reflected in the record and held that the reference was not invalid merely because the prior order had not been communicated. The writ petitions were rejected and the challenge to the reference order failed.

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Issues: (i) Whether an order of the appellate tax authority attains legal existence only upon pronouncement or delivery in open court and communication to the parties. (ii) Whether, on the facts, the reference of the appeals to the Full Bench was without jurisdiction.

Issue (i): Whether an order of the appellate tax authority attains legal existence only upon pronouncement or delivery in open court and communication to the parties.

Analysis: The governing principle applied from civil and criminal procedure is that a judgment or order becomes operative only when formally pronounced or delivered in the manner required by law. An undisclosed order, not pronounced with notice to the parties and not communicated, cannot be treated as an effective order in the eyes of law. The same principle was held applicable to proceedings before the tax appellate authority determining assessment or penalty.

Conclusion: Yes. An order not pronounced or delivered in accordance with law and not communicated to the parties is non est.

Issue (ii): Whether, on the facts, the reference of the appeals to the Full Bench was without jurisdiction.

Analysis: The record showed that the two-member Bench had passed an order, but before certification and issuance of copies, the matter was placed before the Chairman and then referred to the Full Bench in the exercise of the authority available under the relevant rules. The Court accepted the administrative and procedural course reflected in the record and held that the reference was not vitiated merely because the earlier order had not been communicated. The reliance placed on the rule limiting Full Bench reference to cases of difference of opinion did not persuade the Court to hold the reference unlawful on these facts.

Conclusion: No. The reference to the Full Bench was held to be within jurisdiction.

Final Conclusion: The writ petitions were rejected, and the challenge to the reference order failed.

Ratio Decidendi: A judicial or quasi-judicial order has legal effect only upon formal pronouncement or delivery in the mode required by law, and an internal or uncommunicated order does not attain operative status.

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