LAWS(SC)-1974-10-25

T V SUNDRAM IYENGAR AND SONS THE COMMISSIONER OF COMMERCIAL TAXES MYSORE BANGALORE Vs. STATE OF MADRAS: M G BROTHERS

Decided On October 10, 1974
T.V.SUNDRAM IYENGAR AND SONS Appellant
V/S
STATE OF MADRAS Respondents

JUDGEMENT

(1.) Wheather the supply for consideration by an assessee of bus bodies constructed and fitted to chassis provided by the customers amounts to sale chargeable to sales tax is the short question which arises for determination in these five civil appeals Nos. 2229, 2230 and 2231 of 1969 and 290 and 291 of 1970. Appeals Nos. 2229, 2230 and 2231 of 1969 have been filed on certificate by T. V. Sundram Iyengar and Sons Pvt. Ltd. Madurai against the judgment of the Madras High Court. The order two appeals have been filed on certificate by the Commissioner of Commercial Taxes Mysore against the judgment of the Mysore High Court. This judgment would dispose of all the five appeals.

(2.) The matter relates in the three appeals against the judgment of the Madras High Court to assessment years 1955-56, 1956-57 and 1957-58. The Appellate Assistant Commissioner and the Appellate Tribunal held that the appellant company was liable to pay sales tax under the madras General Sales Tax Act, 1939 in respect of bus bodies constructed and fitted by it to chassis provided by the customers. On the matter having been taken up in revision by the appellant company to the High Court, the High Court referred to the fact that no contracts or agreements as such were produced by the appellant company. It was observed that the nature of the transactions relating to the supply of bus bodies had to be determined on the basis of forms of "repair orders" which the appellant company used to get filled in by its customers. On the basis of the material on record, the High Court agreed with the conclusion arrived at by the Tribunal. The matter was, however, remanded to the Tribunal to enable the appellant company to produce the actual agreements, if any, between the appellant company and its customers. the High Court in this context observed as under:

(3.) Mr. Swaminathan who appears for the assessees in all the five appeals submits that after the remand order of the High Court, no agreements between the appellant company and its customers were filed by the appellant company before the Tribunal and, as such, the Tribunal reiterated the liability of the appellant company for the payment of sales tax in respect of the above item. Although revision petition has been filed by the appellant company against the order of the Tribunal after the remand to the High Court, the real grievance of the appellant company, according to Mr. Swaminathan, is against the judgment of the High Court appealed against as the question of the liability of the appellant company to pay sales tax in the absence of a formal agreement has been determined by this judgment.