Case Note & Summary
The Commissioner of Sales Tax, Maharashtra State, Mumbai, filed a reference under Section 61 of the Bombay Sales Tax Act, 1959, against M/s Superphone India Ltd. The reference arose from a common judgment and order dated 6 December 2002 of the Maharashtra Sales Tax Tribunal. The Tribunal had referred a question of law for the determination of the High Court: whether the Tribunal was justified in law in holding that it is open to the Tribunal, in deciding a Second Appeal under Section 55(2) of the Act against an order summarily rejecting the First Appeal for non-payment of part payment fixed by the First Appellate Authority, to interfere with the amounts fixed by the First Appellate Authority towards part payment on the ground that the said Authority has not applied its mind. The High Court heard the applicant's counsel, Ms Chavan and Mr Takke. The respondent was duly served but did not appear. The Court examined the scope of the Tribunal's jurisdiction under Section 55(2) and held that the Tribunal's power in a second appeal is limited to questions of law. The fixing of part payment by the first appellate authority is a discretionary order, and the Tribunal cannot interfere with it unless the order is perverse or arbitrary. The Court answered the reference in the negative, holding that the Tribunal was not justified in interfering with the part payment amount. The reference was disposed of accordingly.
Headnote
A) Sales Tax - Second Appeal - Jurisdiction of Tribunal - Section 55(2) Bombay Sales Tax Act, 1959 - The Tribunal, in a second appeal against summary rejection of first appeal for non-payment of part payment, cannot interfere with the amount fixed by the first appellate authority unless the order is perverse or arbitrary. The Tribunal's jurisdiction is limited to questions of law. (Paras 1-3)
Issue of Consideration
Whether the Tribunal was justified in law in holding that it is open to the Tribunal in deciding a Second Appeal under Section 55(2) of the Bombay Sales Tax Act, 1959 against the Order summarily rejecting the First Appeal for non-payment of Part Payment fixed by the First Appellate Authority to interfere with the amounts fixed by the First Appellate Authority towards Part Payment on the ground that the said Authority has not applied its mind.
Final Decision
The reference is answered in the negative. The Tribunal was not justified in interfering with the part payment amount fixed by the first appellate authority. The reference is disposed of.
Law Points
- Tribunal's jurisdiction in second appeal is limited to questions of law
- cannot interfere with discretionary order of part payment unless perverse or arbitrary
- Section 55(2) Bombay Sales Tax Act 1959
