PATEL TILES FACTORY Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The applicant is a registered dealer under the Gujarat Sales Tax Act 1969 thereafter referred to as the Sales Tax Act]. Its business is to manufacture and supply tile to the Government in execution of the written contracts entered into with the Government from time to time. The applicant entered into a contract with the State Government (PWD) for supply of 7804 sq. metre hydraulic pressed blocks (hereinafter refered to as the tiles) for Panam Main Canal Project. The applicant filed an application to the Commissioner of Sales Tax under Section 62 of the Sales Tax Act to determine the question as to whether transaction of supply of the tiles under the contract amounted to a sale of goods. The Deputy Commissioner of Sales Tax Ahmedabad by his order dated 5th September 1983 arrived at the conclusion that the contract between the applicant and the Government amounted to a contract sale for supplying the tiles for a sum of Rs.74 333.12 ps. The applicant had posed further question as to whether transaction of receipt of cement from the Government in terms of the contract for use in execution of the said work amounted to purchase of goods by the applicant within the meaning of the Sales Tax Act. The Deputy Commissioner of Sales Tax held that cement supplied by the Government in terms of the contract would not considered as purchase of cement by the applicant.

(2.) The applicant filed Appeal No. 23 of 1983 before the Gujarat Sales Tax Tribunal at Ahmedabad (the Tribunal for short). The Tribunal by its judgment and order dated 28th June 1985 arrived at the conclusion that supply of tiles by the applicant to the Government on the basis of the contract amounted to sale of such tiles. The Tribunal further hold that in an application under Section 62 of the Sales Tax Act it was not open to it to determine the sale price and that the said contention was not canvassed before the Deputy Commissioner of Sales Tax. The Tribunal therefore dismissed the appeal.

(3.) Against the judgment and order of the Tribunal the applicant preferred an application for making a reference to this Court as provided under Section 69 of the Sales Tax Act. The Tribunal by its order dated 15th June 1988 referred the following question for our decision. 1 Whether on the facts and in the circumstances of the case and on proper interpretation of the terms of contract No. B-1/PC-3/36 of 1979-80 entered into by the applicant with P.W.D. the Tribunal is right in holding that the supply of Hydraulic Pressed Blocks (tiles) by the applicant to the Government in due execution of the said contract would amount to sale of such tiles under the Gujarat Sales Tax Act 1969 ? 2 Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the question about determination of sale price of sale if any as referred to in the above question was outside the purview of Section 62 of the Gujarat Sales Tax Act 1969 Re: QUESTION No. 1 ------------------