The scope of revisional powers under section 40 of the Haryana General Sales Tax Act is limited to examining the legality or propriety of proceedings or orders.

V. K. BALI, J. - The question that has been referred to by Shri A. Banerjee, Member, Sales Tax Tribunal, Haryana in S.T.M. No. 109 of 1986-87 reads thus :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in setting aside the order of the Additional Excise and Taxation Commissioner-II dated December 12, 1983 passed under section 40 of the Haryana General Sales Tax Act 1973 ?"

2. Brief facts giving rise to the question formulated by the Tribunal for our opinion need a necessary mention. M/s. Free Wheels (India) Limited, Faridabad, was subjected to tax to the tune of Rs. 5,79,211.00 for the year 1970-71 on the transaction which was treated as inter-State sales by the Assessing Authority. It challenged the aforesaid assessment by way of an appeal before the Deputy Excise and Taxation Commissioner who vide his order dated 5th of January, 1979, held that the transactions involved were exempt from payment of tax in terms of rule 29(v) of the Punjab General Sales Tax Rules, 1949 by relying upon the judgment of the Tribunal dated November 21, 1977, in case of M/s. Liberty Footwear Co., Karnal. The Additional Excise and Taxation Commissioner-II, Haryana, by invoking the provisions of section 40 of the Haryana General Sales Tax Act, 1973 read with section 9(2) of the Central Sales Tax Act, 1956, in suo motu proceedings initiated by him set aside the order of the Deputy Excise and Taxation Commissioner (Appeals) dated January 5, 1979 and held that the said orders to be illegal in view of the subsequent judgments of the Tribunal dated April 21, 1980 and March 17, 1980 in M/s. Steel Kraft, Panipat, and M/s. Nefa Exports (P) Limited, Faridabad. It was also held by the Additional Excise and Taxation Commissioner that such transactions did not amount to exports. The case was remitted back to Deputy Excise and Taxation Commissioner with the direction to decide the appeals on merits after giving opportunity to M/s. Free Wheels (India) Limited to prove whether its exports outside India were direct exports or indirect exports through export house. M/s. Free Wheels (India) Limited being aggrieved by the order aforesaid filed appeal before the Sales Tax Tribunal which was accepted vide orders dated December 21, 1984. The impugned orders passed by the revisional authority were set aside. The State of Haryana then filed an application under section 42 of the Haryana General Sales Tax Act, 1973, for reference to the High Court the question of law arising out of the orders passed by the Sales Tax Tribunal. However, the Tribunal vide order dated October 15, 1985, declined to refer the question of law. Still aggrieved the State of Haryana filed a petition under section 42(2) of the Haryana General Sales Tax Act in this Court with the prayer that the Tribunal may be directed to refer the question of law to the High Court along with the statement of the case enabling the court to give its opinion thereon. This petition was allowed vide orders dated October 15, 1986 and the Tribunal was directed to refer the question of law together with the statement of the case for its opinion. It is in these circumstances that the question as has been reproduced in the earlier part of the judgment has been referred for our opinion.

3. We have heard the learned counsel for the parties and gone through the records. Section 40 of the Haryana General Sales Tax Act reads as under :

"40. Revision. - (1) The Commissioner may on his own motion call for the record of any case pending before, or disposed of by, any assessing authority or appellate authority, other than the Tribunal, for the purposes of satisfying himself as to the legality or to propriety of any proceedings or of any order made therein and may pass such order in relation thereto as he may think fit :

Provided that no order, shall be so revised after the expiry of a period of eight years from the date of the order :

Provided further that the aforesaid limitation of period