Reference to Tribunal questions refused where the core finding was undisputed and only redemption fine quantum was challenged

Reference jurisdiction under Section 35H(1) was invoked to require the Tribunal to frame and refer questions of law, but the proposed questions did not arise from any serious dispute on the material finding that the dragline was manufactured in the assessee's own premises. As the challenge was confined mainly to the quantum of redemption fine, no error was shown in the Tribunal's refusal to make a reference. The reference application therefore failed and was dismissed.

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Issues: Whether the Tribunal was right in declining to refer the questions proposed by the assessee for adjudication.

Analysis: The reference jurisdiction under Section 35H(1) was invoked to require the Tribunal to draft and refer questions of law. The record showed that the assessee did not seriously dispute the finding that the dragline was manufactured in its own premises and had chiefly challenged the quantum of redemption fine. In that situation, no error was shown in the Tribunal's refusal to make a reference on the proposed questions.

Conclusion: The refusal to refer the questions was upheld, against the assessee.

Final Conclusion: The reference application failed and stood dismissed.

Ratio Decidendi: A reference need not be made where the proposed questions do not arise from a serious dispute on the material findings and the challenge is confined to a limited ancillary aspect.

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