SACHIDANAND SHARMA Vs. UNION OF INDIA

JUDGEMENT

(1.) The short question for decision in the civil writ petition is whether additional demand of Rs. 35,211.40 for sales tax in respect of the motor-bodies built by the petitioner is valid. The decision of this question would depend upon the interpretation of item I of the First Schedule of the Bengal Finance (Sales Tax) Act 1941, as extended to the Union Territory of Delhi (hereinafter called the Act), as it stood prior to the amendment of the same by notification dated the 31st August 1966. It then read as follows:-

(2.) It is pertinent to note that according to section 5(l)(a) of the Act the rate of tax payable by a dealer shall be levied as follows:-

(3.) According to section 5 read with First Schedule of the Act a rate of ten paise in the rupee can be charged in respect of the goods specified in the First Schedule, as per clause 5-A of section I (a), whereas if, "motor-bodies" do not fall within the First Schedule of Item I, this case would fall only under clause (e) of section 5(1); the rate would then be only five paise in the rupee, namely, half of what is leviable on the sale of goods mentioned in the First Schedule.