Section 35 reference must arise from real tax facts, not hypothetical transactions or speculative liability.

Section 35 of the U.P. Sales Tax Act applies only where a tax question actually arises from an existing dealer, transaction, or liability; it does not permit reference on abstract, assumed, or hypothetical facts. The provision's language and scheme indicate that the Commissioner must decide real disputes tied to present circumstances after hearing the applicant, not speculate on future events. On that basis, the Commissioner was justified in declining to answer the reference based on assumed facts, and the appeal failed.

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Issues: Whether the Commissioner under Section 35 of the U. P. Sales Tax Act could adjudicate a tax question based on assumed or hypothetical facts instead of an existing and specific transaction.

Analysis: The power under Section 35 is attracted only when a question actually arises in relation to a particular dealer, transaction, or tax liability and not when the reference is made on abstract or assumed facts. The wording of the provision, especially the use of the present tense and the scheme of sub-sections (1), (2), and (6), shows that the Commissioner is meant to decide questions arising from existing situations, after hearing the applicant, and not to pronounce on speculative future events. Accepting a contrary view would open the door to numerous hypothetical and potentially frivolous applications, which would be inconsistent with the statutory scheme.

Conclusion: The Commissioner rightly declined to answer the reference on assumed facts, and the appeal failed.

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