BHARAT HEAVY ELECTRICALS LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) A Division Bench of this Court, has by an order dated 16-9- 2003, referred the following question of law for the opinion of a Full bench: whether the High Court has the power to grant interim order of stay of recovery of the tax, pending, disposal of a Revision Petition filed by the assessee under Section 23 (1) of the karnataka Sales Tax Act, 1957. Facts and reason for reference:

(2.) THE petitioner filed a Revision Petition under Section 23 (1) of the Karnataka Sales Tax Act, 1957 ('act' for short) challenging the order dated 26-10-2002 passed in STA 361/2000 by the karnataka Appellate Tribunal. In the said proceedings, the petitioner filed IA. I/ 03 under section 151 CPC praying for stay of recovery of the balance of the disputed amount of tax pending disposal of the Revision Petition. The State resisted the application by contending that there is no inherent power in this Court to grant interim orders while exercising revisional power under Section 23 or appellate power under Section 24 of the Act. Reliance was placed on the decision in Mec Wires v. State of Karnataka, 113 (1999) STC 391 in support of the said contention.

(3.) THE Division Bench which heard the application was of the view that the decision in M. E. C. WIRES required reconsideration, for the following reasons.