K S VASUDEVAN Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE Sales Tax Tribunal, Orissa, in its statement of case dated June 19, 1962 referred the following question of law to this Court for decision :

(2.) A preliminary point was taken on behalf of the Sales Tax Department that the reference is not competent for the reason that if Rule 65 is discriminatory it is void under Article 14 of the Constitution and that in consequence the proceedings under Section 24 (2) (3) of the Orissa Sales Tax Act (hereinafter referred to as the Act) under which the reference has been made are not maintainable. The department's point is that the dealer's contention, --that Rule 65 offends Article 14, -- is not one which the Sales Tax Tribunal constituted under the Act could refer under Section 24 (3), its duty being merely to administer the Act. This contention, however, has no force in the face of the position that the High Court by their Order of reference dated May 11, 1962 directed the Sales Tax Tribunal under Section 24 (3) of the Act to state a case and refer the aforesaid question to this Court. In such a position ft is well settled that the High Court is not precluded from answering the question referred. The High Court in directing the Tribunal to refer the question must necessarily have come to the conclusion that the decision of the tribunal in declining to refer the question was not correct, in other words, the tribunal was not right in holding that the question did not arise out of its order and therefore it was not open to the High Court to go behind that decision. This disposes of the preliminary point in favour of the dealer.

(3.) COMING to the merits, the relevant facts are these : The petitioner Sri K. S. Vasudevan of Ms. South Indian Hotel of Cuttack is a dealer carrying on business of running a hotel registered under the Orissa Sales Tax Act. He was assessed by enhancement of turnover in respect of quarters commencing from quarter, ending on March 31, 1955 to quarter ending on March 31, 1957. The Tribunal reduced the assessment to some extent except for the last quarter ending on March 31, 1957 which is the subject matter of this reference.