LAWS(ALL)-1985-12-11

ORIENTAL FIRE AND GENERAL INSURANCE COMPANY LIMITED NOW KNOWN AS ORIENTAL Vs. COMMISSIONER OF SALES TAX

Decided On December 19, 1985
ORIENTAL FIRE AND GENERAL INSURANCE COMPANY LIMITED (NOW KNOWN AS ORIENTAL Appellant
V/S
COMMISSIONER OF SALES TAX Respondents

JUDGEMENT

(1.) These five revisions at the instance of the assessee are directed against the judgment dated 13th February, 1985, passed by the Sales Tax Tribunal, Kanpur, relating to assessment years 1973-74, 1974-75 and 1975-76 arising out of original assessment as well as proceedings under Section 21 of the U.P. Sales Tax Act (hereinafter referred to as the Act). Since all the five revisions arise out of a common order, they are being disposed of by a common judgment.

(2.) The applicant-assessee is an insurance company and, according to it, provides services of general insurance by covering risk of loss against accidents, fire, theft, etc. The business of the applicant is to provide insurance to the customers and indemnify them against loss, damage or theft of the insured property in terms of the insured contracts. It is also doing the workmen compensation insurance, third party insurance, sickness insurance, robbery, theft, etc. Some time in motor claims the assessee gets the salvage which is disposed of by inviting quotations periodically but the authorities under the Act levied sales tax on the amount received from the disposal of salvage. It is also alleged that the assessee is not a "dealer" and is not carrying on any business of buying or selling goods and as such no sales tax can be levied on it.

(3.) It is not necessary to go into the details of the facts of each case as they are not relevant for deciding the question of law as to whether the activities carried on by the applicant are "business" as defined in Section 2(aa) and it is a "dealer" within the meaning of Section 2(c) of the Act.