Builders & Dev.Thr.Prop. Vs. State of Karnataka Thr.C.C.T.  INSC 2037
(28 November 2008)
JURISDICTION CIVIL APPEAL NO.6905 OF 2008 (Arising out of S.L.P.(C)
No.10123/2008) M/s. Continental Builders & Developers through its
Proprietor ...Appellant(s) Versus State of Karnataka thr. C.C.T.
...Respondent(s) ORDER Leave granted.
A dispute arose
before the Tribunal in the context of sales tax liability towards development
charges received by the appellant-builder.
We quote here in below
para 9 of the Order of the Tribunal.
has placed reliance over the decision of this Tribunal in respect of the same
appellant in STA No.239 to 243 of 2003 dated 11.09.2003. We are all unable to
follow the said decision as with due respects to the said bench we are of the
opinion that the law is not properly applied to the set of similar facts
obtaining as in this case and for this year."
As stated above, the
Tribunal observed that it was not in agreement with the view expressed by its
earlier coordinate bench in S.T.A.Nos.239-243/2003, dated 11th September, 2003.
We are surprised that despite the existence of the Regulation 54(a)(i)
stipulating that in the event of ...2/- CA...@ SLP(C) 10123/08...contd..
-2- conflict of
decisions, the matter is required to be referred to the Chairman, that was not
done in this matter. In that connection, we quote Regulation 54(a) in extenso
Members of a Bench shall refer any proceeding before them to the Chairman with
a recommendation that it may be placed before a Full Bench:- (i) When they
consider that the decision which they propose to take in the proceeding
involves a substantial departure from the previous decision of the Tribunal; or
(ii) When the case involves a point of law of general importance; or (iii) When
conflicting decisions of the Tribunal are brought to their notice; or (iv) When
they differ in opinion on any point material for the decision of the case.
While making the
recommendation for constitution of Full Bench, the Members shall formulate the
specific points for determination by the Full Bench."
In the above
circumstances, without expressing any opinion on the merits of the case and
keeping contentions on both sides expressly open, we direct the
S.T.A.No.2601/2004 to be placed before the Chairman, who is requested to
constitute a special Bench in view of the conflicting opinions of the
coordinate Benches of the Tribunal in terms of Regulation 54(a)(i).
Before concluding, we
request the Tribunal to dispose ...3/- CA...@ SLP(C) 10123/08...contd..
-3- of the matter as
expeditiously as possible. We make it clear that the departmental enquiry
ordered to be held by the High Court is not being interfered with despite our
present order of setting aside the impugned judgment of the High Court.
Civil Appeal stands
allowed accordingly, with no order as to costs.
impugned judgment of the High Court is set aside.
(B. SUDERSHAN REDDY)
ITEM NO.50 COURT NO.5
SECTION III SUPREME COURT OF INDIA RECORD OF PROCEEDINGS Petition(s) for
Special Leave to Appeal (Civil) No(s).10123/2008 (From the judgement and order
dated 11/10/2007 in STRP No.22/2006 of the HIGH COURT OF KARNATAKA AT
BANGALORE) M/S CONTINENTAL BUILDERS & DEV.THR.PROP. Petitioner(s) VERSUS
STATE OF KARNATAKA THR.C.C.T. Respondent(s) (With prayer for interim relief)
Date: 28/11/2008 This Petition was called on for hearing today.
HON'BLE MR. JUSTICE
S.H. KAPADIA HON'BLE MR. JUSTICE B. SUDERSHAN REDDY For Petitioner(s) Mr. Soli
J. Sorabjee, Sr.Adv.
Mr. Ashok Kumar
Mr. Avinash Kumar
Mr. Sanjay Misra,
For Respondent(s) Ms.
UPON hearing counsel
the Court made the following ORDER Leave granted.
Civil Appeal stands
allowed with no order as to costs in terms of the signed order.