HINDUSTAN AERONAUTICS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These six revision petitions, three of them, viz, STRPs. 28, 27 and 29 of 1975, under the Karnataka, Sales Tax Act, for the year 1960-61, 1961- 62 and 1962-63 respectively, and the remaining three viz, STRPs. 25, 26 & 24 of 1975, under the Central Sales Tax Ac for the corresponding years respectively, at the instance of Mis Hindustan Aeronautics Ltd, Bangalore, involve common question of law and facts and are therefore proposed to be decided by a common judgment.

(2.) The petitioners is the manufacturer of spare parts and accessories of various aircrafts and has also established facilities for assembling, servicing, repairing, overhauling of the aircrafts, their instruments and accessories. The petitioner also runs two canteens, one in the factory premises and the other in the aerodrome premises.

(3.) The sales-tax authorities sought to subject to sales that portion of the total turnover of the petitioner for the relevant years in question which was equivalent of the money value of the spare parts of the aircrafts which it supplied to the Indian Air Force as a result of their use in the process of repairing, servicing and overhauling of the aircrafts, their instruments and accessories which were sent to the petitioner for the said purpose during the relevant years in question. The sales-tax authorities also sought to bring within the purview of the Sales Tax Act the income of the canteen run by the petitioner at the airport.