Withdrawal of sales tax reference not as of right, but court may decline to answer questions when neither side wants merits decided

A reference under Section 61(1) of the Bombay Sales Tax Act, 1959 cannot be withdrawn as of right once made by the Tribunal. However, if the applicant states that it no longer wishes to pursue the reference and the respondent is also not interested in having the questions answered, the Court is not obliged to decide the reference on merits and may decline to answer the referred questions, leaving them open for an appropriate case.

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Issues: Whether a reference made at the instance of the applicant could be withdrawn, and whether the Court could decline to answer the referred questions when the applicant stated that it was no longer interested in pursuing the reference.

Analysis: A reference under Section 61(1) of the Bombay Sales Tax Act, 1959 is ordinarily required to be answered, but the Court held that the party at whose instance the reference was made has no absolute right to withdraw it once made. At the same time, where that party states that it does not wish to pursue the reference and the other side is also not interested in having the questions answered, the Court is not obliged to decide the reference on merits and may decline to answer the questions, keeping them open for decision in an appropriate case.

Conclusion: The reference could not be withdrawn as of right, but the Court declined to answer the referred questions and disposed of the matter.

Ratio Decidendi: A party cannot unilaterally withdraw a reference once made by the Tribunal, but the Court may decline to answer the referred questions where the party at whose instance the reference was made no longer wishes to pursue it and no hearing on merits is effectively required.

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