MC KENZIES LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) This is an appeal by special leave directed against the judgment of the Bombay High Court in a reference made to it under section 34 of the Bombay Sales Tax Act, 1953. One of the questions referred to the High Court was " whether the transaction referred to in bill dated 29th June, 1955, is liable to sales tax under the Bombay sales Tax Act, 1953. "

(2.) The appellant, M/s. Mckenzies Limited (hereinafter referred to as the appellant) , who are engaged in the business of body-building on motor chassis, entered into a contract for the construction of 218 bodies with the Government of India. The price agreed upon was rs. 1,730 per body. In pursuance of this contract, the appellant presented a bill for five bodies supplied by them on June 29, 1956, for rs. 8,650. Under section 27 of the Bombay Sales Tax Act, 1953, the appellant applied to the Collector for the determination of the follow- ing three questions:

(3.) The Additional Collector, Sales Tax, answered all these questions in the affirmative. The appellant appealed to the Sales Tax Tribunal against the decision of the Additional Collector. With regard to the second question, the Tribunal held that no answer ought to have been given as it was of a general nature. The other two questions were answered against the appellant.