Doctrine of merger and limitation in sales tax revision can raise a referable question of law when the Tribunal's own findings create legal controversy.

Under the Bombay Sales Tax Act, 1959, the Tribunal's own finding that the assessment order had not merged in the appellate order left a debatable legal issue on whether the subsequent revision was barred by limitation. That controversy on the doctrine of merger and the effect of limitation in revisional proceedings raised a referable question of law under section 61. The Tribunal was therefore not justified in refusing the Revenue's reference merely on the basis that no question of law arose, and the matter was allowed with directions to refer the questions of law.

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Issues: Whether the Tribunal was justified in refusing to refer the questions of law arising from its decision on the doctrine of merger and limitation under the Bombay Sales Tax Act, 1959.

Analysis: The revisional jurisdiction was invoked under section 57 of the Bombay Sales Tax Act, 1959 after the First Appellate Authority's order. The Tribunal had held that the assessment order had not merged in the appellate order, yet it still declined to refer the Revenue's questions on the ground that no question of law arose. Once the Tribunal accepted that merger did not apply, the further issue whether the revision was barred by limitation in relation to the appellate order plainly raised a debatable legal question. The refusal to make a reference was therefore inconsistent with the existence of a substantive question of law under section 61.

Conclusion: The Tribunal was not justified in refusing the reference. The application was allowed and the Tribunal was directed to refer the questions of law.

Ratio Decidendi: Where the Tribunal's own findings disclose a legal controversy on the applicability of merger and the effect of limitation in revision proceedings, the issue constitutes a referable question of law and cannot be declined as non-arising.

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