SYNTHETIC SUPPLIERS Vs. COMMISSIONER OF SALES TAX MUMBAI

JUDGEMENT

(1.) Heard the learned counsel for the rival parties.

(2.) This reference, at the instance of the Applicant/Assessee, is made by the 4th Bench of the Maharashtra Sales Tax Tribunal, Mumbai under Section 61(1) of the Bombay Sales Tax Act, 1959 vide its judgment dated 27th September, 2002 for the opinion of this Court on the following question of law : Whether the transfer of motor car by the firm to its partners constitutes a sale under Section 2(28) of the Bombay Sales Tax Act, 1959 and therefore, liable to tax? FACTS

(3.) The few facts leading to this reference can be briefly summarized as under: The Applicant is a partnership firm engaged in the business of buying and selling yarn. The said partnership firm was dissolved on 29.12.1989. At the time of dissolution, all three partners executed a Dissolution Deed. The said firm was assessed for the period from 01.04.1989 to 29.12.1989 by the Sales Tax Officer by an order of assessment dated 15.03.1993. The Sales Tax Officer held that there was sale of car from the firm to its partner and taxed the transaction by raising a demand of Rs.28,040/including interest charged under Section 36(3)(b) of the Bombay Sales Tax Act, 1959 (in short the BST Act, 1959).