HIND RECTIFIERS LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The applicants are registered dealers under the Bombay Sales Tax Act, 1959. They manufacture and sell rectifiers. During the relevant period, the applicants were assessed to payment of sales tax by the Sales Tax Officer in respect of the sales of rectifiers effected by them. The assessments were made on the basis that the rectifiers sold by the assessees fell under entry 20 in Schedule C to the Bombay Sales Tax Act of 1959 and not under the residuary entry 22 in Schedule E to the said Act.

(2.) Being aggrieved by this finding of the Sales Tax Officer, the assessees went in appeal before the Assistant Commissioner of Sales Tax. The Assistant Commissioner, however, confirmed the original finding. Thereafter, the assessees approached the Tribunal which also upheld the previous findings. Thereafter, in Sales Tax Reference No. 31 of 1976, the assessees made an application to the Tribunal for referring to the High Court the question whether the rectifiers manufactured and sold by them fell under entry 20 in Schedule C or under entry 22 in Schedule E. It was also urged by the assessees that the rectifiers might also fall under entry 15 in Schedule C. The Tribunal, however, rejected the application of the assessees and declined to make a reference to the High Court. Thereafter, the assessees came to the High Court and pursuant to the directions of the High Court, the present reference in Sales Tax Reference No. 31 of 1976 has been made under section 61, sub-section (2), of the Bombay Sales Tax Act, 1959. The references in the other sales tax references have been made under section 61, sub-section (1), of the Bombay Sales Tax Act, 1959.

(3.) The question which has been referred to us for determination in all these references is as follows :