Amended section 43B required a modified reference on unpaid sales tax liability when the Tribunal declined the original question.

Section 43B, as amended retrospectively by the Finance Act, 1989 from 1 April 1984, had to be considered when examining whether unpaid sales tax liabilities were allowable. The High Court held that the Tribunal could not ignore the amended statutory position while dealing with the Department's request under section 256(2), because the original proposed question needed to be reframed in light of the amendment. The Tribunal was therefore directed to state the case and refer the modified question of law for decision.

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Issues: Whether, in view of the amended provisions of section 43B, the Tribunal should be directed under section 256(2) to state the case and refer a modified question on the allowability of unpaid sales tax liabilities.

Analysis: The petition arose after the Tribunal declined to refer the Department's proposed question. The Court noted that section 43B, as amended by the Finance Act of 1989 with retrospective effect from 1 April 1984, had to be taken into account, and that the original proposed question required modification in light of the amended statutory position.

Conclusion: The Tribunal was directed to state the case and refer the modified question of law for decision.

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