The Government of India set up an organisation the Directorate of Disposals United States Transfer Directorate to dispose of war equipment taken over by them from the American forces after the Second World War.
Appeal by special leave from the judgment and order dated November 26, 1964 of the Calcutta High Court in Sales Tax Reference No.
This Organisation had severalbranches under its companytrol.
Ganapathy Iyer, V. D. Mahajan and S. P. Nayyar, for the appellant.
616 of 1966.
A part of the equipment was appropriated by the Government of India to their own use some equipment was, sold to the State Governments and other autonomousbodies and the rest was sold to the public.
was delivered by RAMASWAMI J. Shah, J. I regret my inability to agree with the view expressed by Ramaswami, J. Section 2 c of the Bengal Finance Sales Tax Act, 1941, defines a dealer as meaning any person who carries on the business of selling goods in West Bengal and as including the Government.
When the equipment was substantially disposed of, its work was reduced to a great extent and therefore it merged with the office of the Regional Commissioner Disposals on January 11, 1950.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
SHAH J. delivered a dissenting Opinion.
4 of 1962.
Later on the Supply and Disposal Services of the Government of India were merged and the department was redesignated as Directorate of Supplies Disposals.
The appellant declined to do so, companytending that he was number a dealer and that he was number engaged in the business of buying and selling and was, therefore number liable to pay any sales tax, but the companytention of the appellant was overruled and he was assessed to sales tax for three periods from April 1, 1949 until May 31, 1951.
As directed by the High Court, the Board of Revenue referred the following question of law for the decision of the High Court under S. 21 3 of the Act Whether the Director of Supplies and Disposals, United States Transfer, Directorate having his office situated at No.
Sen, P. K. Chatterjee, G. S. Chatterjee for P. K. Bose, for the respondent.
The Judgment of SIKRI and RAMASWAMI, JJ.
The function of this directorate was to dispose of surplus goods, and to purchase goods on behalf of the Government of India.
The appellant filed revision petitions to the Commissioner of Commercial Taxes and to the Board of Revenue, but these petitions were dismissed.
The appellant took the matter in appeal to the Assistant Commissioner of Commercial Taxes, Calcutta who modified the orders of assessment, holding that the supplies made by the appellant were liable, to be taxed except those which were proved to be mere transfers to its sister departments in the Government of India.
