ARIHANT METAL INDUSTRIES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THE present appeal is directed against judgment and decree passed by learned Joint District Judge, Bhavnagar in Regular Civil Appeal No.12 of 1992.

(2.) IT was on the following substantial questions of law that this Appeal came to be admitted:

(3.) FACTS leading to the present Second Appeal and with reference to which the above substantial questions of law arise may be stated. The plaintiff - Arihant Metal Industries instituted Regular Civil Suit No.341 of 1979 before the Court of learned 3rd Joint Civil Judge (S.D.), Bhavnagar for declaration and permanent injunction to the effect that respondent have no right to sell the suit power press machine and that the proclamation issued by Sales Tax Authorities were illegal. The case of the plaintiff in the plaint was inter alia that they were the owners and in occupation of the factory situated in the town of Sihor in the name and style of Arihant Metal Industries and they had one power press in the factory. The plaintiff had purchased said power press machine from one Jyotishchandra Shantilal Bhuta, the owner of Shree Vallabh Metal Industries, Sihor on 17.04.1979 for Rs.75,000/ -. It was the further case that father of said Jyotishchandra, one Shantilal Manilal Bhuta was the owner of another company called Saurashtra Metal Industries and the said Saurashtra Metal Industries had failed to pay the amount of Sales Tax. Therefore, the properties and machineries situated in his factory were taken in attachment in the year 1974. Thereafter the officers of the Sales Tax Department published two proclamations dated 12.05.1979 and 12.06.1979 for selling the said power press machine.