PATEL BROS AND CO Vs. STATE OF GUJARAT

JUDGEMENT

(1.) ON two applications being made to the Gujarat Sales Tax Tribunal under section 69 (1) of the Gujarat Sales Tax Act, 1969, hereinafter referred to as "the said Act", the Tribunal has referred the following questions of law for our decision : andnbspandnbspandnbspandnbspandnbsp" 1. Whether, on the material or evidence on record, the Tribunal was right in holding that all or any of the fifty-five transactions in dispute in Second Appeal Nos. 86 and 87 of 1976 before the Tribunal, were not sales made by M/s. Jivanlal and Co. , the commission agent, to the Bombay buyers but were sales made by the applicant-company to the Bombay buyers ?

(2.) WHETHER , on the material or evidence on record, the Tribunal was right in holding that the movement from Gujarat to Maharashtra of the goods in all or any of the fifty-five transactions in dispute in Second Appeal Nos. 86 and 87 of 1976 before the Tribunal, was made in pursuance of, or was incidental to, a contract entered into by the applicant-company of sale of the goods to the Bombay buyers ?

(3.) FROM the above findings reached concurrently by all the three authorities, we are required to answer the questions referred to us. Before dealing with the submissions of Mr. Joshi, learned Advocate for the applicant, it would be necessary to refer to the relevant statutory provisions and to examine the legal position. Section 6 of the Central Sales Tax Act makes every dealer liable for payment of tax under the Act on all the sales effected by him in the course of inter-State trade or commerce. The word "sale" has been defined in section 2 (g) of the said Act to mean any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration. According to section 3 of the Act sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce if the sale or purchase (a) occasions the movement of goods from one State to another, or (b) is effected by transfer of documents of title to the goods during their movement from one State to another. In this case we are concerned with clause (a) of section 3 of the said Act.