Reference not answered where the referring assessee defaulted in appearance and paper-book preparation, defeating hearing of the question of law.

Under Section 44(5) of the M.P. General Sales Tax Act, the High Court's duty to answer a reference arises only when the reference can in fact be heard. Where the assessee, at whose instance the reference was made, remained absent and failed to take steps for preparation of the paper-books, the hearing was not enabled and the condition precedent for deciding the question of law was not satisfied. Treating the provision as analogous to Section 256 of the Income-tax Act, the Court held that it was not bound to answer the reference and properly refused to do so.

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Issues: Whether the High Court is bound to answer a reference under Section 44 of the M.P. General Sales Tax Act, 1958, when the assessee, at whose instance the reference was made, remains absent and does not take steps for preparation of the paper-books so as to enable hearing of the reference.

Analysis: The obligation under Section 44(5) to decide the question of law arises only when the reference can be heard. Where the party at whose instance the reference was made defaults in appearance and also fails to take necessary steps for preparation of the paper-books, the hearing is not enabled and the condition precedent for answering the reference is not satisfied. The Court treated the provision as analogous to Section 256 of the Income-tax Act, 1961, and followed the view that a reference need not be answered when the referring party is not prosecuting it.

Conclusion: The High Court was not bound to answer the reference and properly refused to do so.

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