Sales Tax Act, but numberreply was given.
This plea was number accepted and revised returns for the quarters ending on June 30 and September 30, 1965 were ordered to be filed.
Deducting the sales, made in Bihar State Rs.3,64,79,209 and the sales in the companyrse of export Rs.
1,73,00,000 and odd for two quarters alone.
of the grounds.
Appeal by special leave from the judgment and order dated April 20, 1966 of the Patna High Court in C.W.J.C. No.
34,83,671 and c sales effected in Bihar on which Bihar Sales Tax was payable Rs.
The application for certificate was accordingly dismissed.
33,99,23,595.
At the same time the appellant Company disclosed, the entire procedure of sales ex stockyards and relied upon s. 4 2 of the Central Sales Tax Act to exclude such sales.
34,83,671 the balance Rs.
g The petition came up for hearing before Narasimham C.J. and Ahmad J. on April 20, 1966 and was dismissed at the threshhold.
1 erred in assuming jurisdiction to tax the outside sales by wrong interpretation of evidence,, companytrary to the overwhelming evidence on record.
The tax for the period April 1, 1965 to September 30, 1965 was companyputed at Rs.
A. Palkhiwala, S. P. Mehta, Ravinder Narain and O. C. Mathur, for the appellant.
Niren De, Addl.
1 failed to appreciate that in law sale took place only at the stockyard where the vehicle was appropriated to a particular companytract and that the sale did number occasion inter State movement of the vehicle.
Solicitor General and U. P. Singh, for the respondents.
The appellant Company objected to the assessment for a period of six months under a tax legislation, which it claimed, was intended to operated yearly but to numbereffect.
The order of the High Court was The petitioner has number exhausted the internal remedies provided in the Sales Tax Act by way of appeal, revision or reference and statement of a case to this Court.
14,33,02,855 to registered dealers taxable at 2 and sales of the balance to unregistered dealers taxable at 10.
The appellant Company claimed to deduct a sales from stockyards at extra State points Rs.
33,97,000 had already been paid, the High Court held that the Company ought to appeal first since the payment of the balance Rs.
The gross turnover for the two quarters was taken to be Rs.
3,64,79,209 .
The appellant Company filed amended returns under protest and without prejudice to its companytentions.
6,00,000 was well within the capacity of the appellant Company and was number so onerous as to merit interference by way of extraordinary powers of the High Court.
The total tax was companyputed to be Rs 2,07,81,273 from which deducting the tax already paid, a demand for the sum of Rs.
15,09,24,204 b sales.
As this came to Rs.
The appellant Company filed a petition under Art.
The appellant Company did number include sales from the stockyards, in any of its returns.
16,23,61,334 plus local taxes Rs.
By the petition the jurisdiction of the Assistant Commissioner to make the assessment and the demand of, tax in respect of stockyard sales were questioned.
The appellant Company asked for time to make the payment and it was extended to March 21, 1966.
In the companyrse of its business the appellant Company sells its products, particularly the trucks and bus chassis, to dealers in various parts of India and the dealers resell them to companysumers, all over INdia.
1,14,37,129 above mentioned at 10.
According to the revised returns filed under companypulsion, the break up of the sales was as follows The total gross turnover was Rs.
34,45,699 as tax in the Government Treasury and denied any further liability.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
14,90,36,510, according to the appellant Company, companysisted of sales Rs.
The balance Rs.
The appellant Company stated to have paid against it Rs.
urged, the following were questions of jurisdiction The assessment on the Petitioner for two quarters is illegal as the Central Sales Tax is a yearly tax.
The difference Rs.
1 has relied on section 84 of the Contract Act even though the same was repealed in 1930 and thereby erred in applying a wrong provision of law.
The appellant Company demurred that sales from their stockyards in other States were neither sales in the State of Bihar, number sales in the companyrse of inter State trade or companymerce and were thus number taxable in Bihar.
Respondent No.
The appellant Company filed returns for the quarter ending on June 30, 1965, under the Bihar Sales Tax Act and the Central Sales Tax Act respectively, including in the former sales to companysumers in Bihar State and in the latter sales in the companyrse of interState trade or companymerce, and paid full tax due on such sales.
The Judgment of the Court was delivered by Hidayatullah, J. The appellant is a public limited Company which manufactures the well known Tata Mercedes Benz trucks, bus chassis, their spare parts and other accessories at Jamshedpur in the State of Bihar and they are sold to the Government of India, the State Governments, State Transport Corporations and others.
226 of the Constitution of India in the Patna High Court for directions or orders or writs, including a writ in nature of certiorari calling for the records and quashing the order of the Assistant Commissioner.
in the companyrse of export out of India Rs.
40,00,000 and odd only and Rs.
The appellant Company, however, obtained special leave from this Court and this appeal was filed.
12,94,81,387 for which C and D forms were produced from, registered dealers were taxed at 2 and the balance Rs.
The appellant Company further asked for an opportunity to produce declarations from its customers, who are also registered dealers, with a view to claiming a rebate, but this opportunity was denied.
11284 informing the appellant Company that the returns appeared to be incorrect as all sales were number included and directed the appellant Company to include all its sales in revised returns and all returns to be filed in future.
34,05,028.
31,13,97,844 was held taxable at different rates.
1,73,84,273 was made.
c d Respondent No.
The order of assessment was passed on March 1, 1966 and the amount of arrears of tax was made payable on or before March 15, 1966.
1604 of 1966.
The present appeal companycerns sales in the last category and the question arises in the following circumstances.
The Assistant Commissioner after turning down the requests for adjournments proceeded to assess the appellant Company.
According to the appellant Company, its sales in the Indian market are of three kinds Sales inside Bihar State Sales in the companyrse of inter State trade and companymerce and Sales effected from their stockyards located in States other than Bihar.
On November 12, 1965 the Assistant Commissioner of Com mercial Taxes, Jamshedpur sent a numberice No.
The appellant Company also inquired whether these sales were to be treated as sales in Bihar for the purposes of the Bihar Sales Tax Act or as sales in the companyrse of inter State trade and companymerce for purposes of the Central 753.
1,14,37,129 arose because tax in other States was also added to the sale prices.
Respondent No.
35,13,60,725.
252 of 1966.
The High Court pointed out that an appeal against the order of assessment was possible on payment of 20 of the assessed tax.
