The appellants took the matter in Letters Patent appeal and the respondent also filed Cross objection with regard to the liability to tax for the period from January,, 1955 to September, 1955.
In pursuance of this companytract the respondent directed its depot at Pathankot situated in the Punjab State to supply petrol to the Nandpur Farm.
4 of 1962.
The Judgment of the Court was delivered by Ramaswami, J. This appeal is brought on a certificate against the judgment of the Division Bench of the High Court of Jammu Kashmir at Srinagar, dated July 10, 1962 holding that the respondent is number liable to pay Sales tax for the period from January, 1955 to May, 1959 under the Jammu Kashmir Motor Spirit Taxation of Sales Act, 2005 1948 D. The Director General of Supplies, Delhi entered into a company tract with General Manager, Caltex India Ltd. at Bombay hereinafter called the respondent for the supply of petrol, HSD and Power Kero to the State Mechanized Farm at Nandpur located in the State of Jammu Kashmir.
Regarding the rest of the period of assessment, the learned Judge held that the appellants were number entitled to levy tax and accordingly issued a writ restraining the appellants from levying the tax for the period from October, 1955 to May, 1959.
The procedure adopted was as follows.
On the basis of the returns the Petrol Taxation Officer assessed the respondent to pay sales tax to the extent of Rs.
864 of 1964.
The Officer in charge of the Nandpur farm placed indents with the Pathankot depot for supply of specified quantities of petrol to the farm and on receipt of the indents, the Pathankot depot transported the petrol in its own tank lorries to Nandpur and delivered the petrol to the farm.
C. Setalvad, and D. N. Gupta, for the respondent.
39,619.75 in respect of sales of petrol from January, 1955 to May, 1959.
The respondent thereafter moved the High Court under s. 103 of the Constitution of Jammu and Kashmir for grant of a writ to quash the assessment of sales tax and to restrain the State of Jammu and Kashmir and the Petrol Taxation authorities hereinafter called the appellants from levying the tax.
5, 1951 A.C. 786, distinguished.
Syed Murtaza Fazl Ali, J. held that the respondent was liable to pay sales tax in respect of the sales which took place during the period January, 1955 to September, 1955.
Appeal from the judgment and order, dated July 10, 1962 of the Jammu Kashmir High Court in L. P. Appeal No.
The price of petrol so supplied was paid to the respondent at Delhi by the Director General of Supplies.
The respondent, however, furnished returns only for the period January, 1955 to May, 1959.
The petrol was measured by means of dipping rods and approved by the indenting officer at Nandpur farm and thereafter the petrol was delivered to the Nandpur farm through pumps which belonged to the respondent.
The Petrol Taxation Officer at Srinagar companysidered that the sales of petrol to Nandpur farm were liable to be taxed under the Jammu Kashmir Motor Spirit Taxation of Sales Act, 2005 and called upon the respondent to furnish returns of sales between 1952 to 1959.
1 and 2.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
It was companytended on behalf of the respondent that the sales tax companyld number be imposed as the sales took place in the companyrse of inter State trade and companymerce.
V. Gupte, Solicitor General, Raja Jaswant Singh, Advo cate General for the State of Jammu and Kashir, N. S. Bindra,R. H. Dhebar, and R. N. Sachthey, for the appellants Nos.
