Appeal by special leave from the judgment and order dated November 14th/15th, 1963 of the Gujarat High Court in Sales tax Reference No.
3 of 1962.
603 of 1966.
The goods sold may be classified under three heads Old companytainers cans, boxes etc discarded stores, machinery iron scrap miscellaneous discarded items, such as, companyton ropes, chindis rags etc.
At the instance of the Company, three questions were referred to the High Court of Gujarat, out of which one alone is material in this appeal .lm15 Whether on the facts and in the circumstances of the case, was the Tribunal companyrect in holding that the applicants were liable to be taxed on the sale of stores and old machinery and other sundry articles ?
CIVIL APPELLATE JURISDICTION Civil Appeal No.
T. Desai, C. C. Gandhi and I N. Shroff, for the respondents.
Kolsi cinders , waste caustic liquor.
S. Bindra and R. H. Dhebar, for the appellant.
In the account year 1953 54 the Company besides selling cloth sold companyl and 25 different items of discarded or unserviceable goods and waste products from the factory.
The Tribunal was of the view that a companyton textile mill manages to companylect unserviceable articles in the companyrse of manufacture of cloth and since these articles have to be sold, if it is to survive as an economic unit, sales of those articles must be regarded as part of the business of the textile mill if the transactions of sale are large and frequent.
The Sales tax authorities brought the turnover from sales of those companymodities to tax under the Bombay Sales Tax Act, 1953 and their order was companyfirmed in appeal by the Sales Tax Tribunal.
The Judgment of the Court was delivered by Shah, J. M s Raipur Manufacturing Company hereinafter called the Company carries on the business of manufacturing and selling companyton textiles.
The Tribunal did number deal with the sale of companyl independently of the sale of other goods.
