Tribunal may consider a new legal ground on admitted facts when it affects the correct tax assessment.

The Appellate Tribunal's power under section 36(3) of the Tamil Nadu General Sales Tax Act, 1959 is wide enough to entertain a new ground of law based on facts already on record, even if it was not urged earlier. Where no fresh material is required and the plea goes to correct assessment of tax liability, the Tribunal is not confined to the precise grounds raised before the lower authority. The broader principle that an appellate forum may consider a pure question of law on admitted facts was applied, and the matter was remitted for fresh decision on the additional grounds.

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Issues: Whether the Sales Tax Appellate Tribunal was justified in refusing to entertain additional grounds raised for the first time, where the necessary facts were already on record.

Analysis: Section 36(3) of the Tamil Nadu General Sales Tax Act, 1959 empowers the Appellate Tribunal to pass such orders as it thinks fit. The power is wide enough to permit consideration of a new ground of law, provided the issue arises from facts already available on record and no fresh material is required. The Tribunal, as the final fact-finding authority, is therefore not confined to the precise grounds urged before the lower authority when the new plea goes to the correct assessment of tax liability. The earlier view restricting such power was not followed, and the broader principle that an appellate forum may entertain a pure question of law on admitted facts was applied.

Conclusion: The Tribunal ought to have considered the additional grounds on merits; the revision was allowed and the matter was remitted to the Tribunal for fresh decision in accordance with law.

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