STATE OF RAJASTHAN Vs. MAGNUS DRUG HOUSE

JUDGEMENT

(1.) THE Board of Revenue by its order dated 30th July, 1971, has referred the following question for the opinion of this Court : " Whether, in the facts and circumstances of the case, the learned Member has rightly ordered for continuation of stay of recovery proceedings till disposal of the appeal by the party notwithstanding the rejection of the revision itself on the grounds of non-maintainability ?"

(2.) THE aforesaid reference has been made in the following circumstances : THE Assistant Commercial Tax Officer, Circle-A, Ward-I, Jaipur, passed an order dated 22nd August, 1968, whereby he computed that a sum of Rs. 5,492. 70 was payable as tax by the respondent and imposed a penalty of Rs. 1,000 under section 16 (1) (b) of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as the Act ). THE respondent filed a revision petition against the aforesaid order of the Assistant Commercial Taxes Officer before the Board of Revenue. THE said revision petition was disposed of by the learned Member of the Board of Revenue by his order dated 27th November, 1970. THE learned Member of the Board of Revenue held that the revision was not maintainable. But at the same time, the learned Member of the Board of Revenue observed that since the respondent had filed the revision petition under a bona fide belief that an appeal did not lie against the order, it appeared to be in the interest of justice that he should be given time to file an appeal and the time which was spent by him in prosecuting the revision petition should be excluded in computing the period of limitation for the appeal and further that the order which had been passed in the revision petition staying the recovery of the tax and penalty should continue till the disposal of the appeal of the respondent. An application was moved by the assessing authority before the Board of Revenue for referring the question of law arising from the said order of the Board of Revenue dated 27th November, 1970, to this Court and the Board of Revenue by its order dated 30th July, 1971, has referred the question abovementioned to this Court.