MATHER AND PLATT LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) As the parties to those two references under section 61(1) of the Bombay Sales Tax Act, 1959, made by the Maharashtra Sales Tax Tribunal at the instances of the applicants and the points which arise for determination therein are the same, we have thought it convenient to dispose them of by a common judgment.

(2.) The applicants are registered as dealers under the Bombay Sales Tax Act, 1959. They also hold a licence under the said Act. They deal in machinery and its parts. In some cases, they purchase these goods and resell them within the State, while in other cases, they purchase these goods from outside the State and resell them within the State. In respect of some of the sales made by the applicants they became liable to pay both sales tax and general sales tax under the Act while in respect of some other goods, they became liable only to pay general sales tax inasmuch as these goods were purchased by them within the State from a registered dealer by issuing to their vendors a certificate in form 16 to the effect that the goods were being purchased by them for the purpose of resale. In those cases where the applicants were liable to pay both sales tax and general sales tax to the Government, the amount payable by them by way of such taxes was charged separately in the bills. One of such bills on record as a specimen shows the amount so charged as : "3 per cent sales tax. 3 per cent general sales tax."

(3.) In those cases where, however, the applicants were liable to pay only general sales tax, they recovered from their customers not only the amount of general sales tax which was payable by them to the Government but also a certain amount on account of sales tax. The bills issued by the `applicants in respect of these sales do not appear to be uniform in pattern. One of the bills which is a part of the statement of the case in Sales Tax Reference No. 10 of 1978 shows the relevant items as follows : "3 per cent surcharge on account of sales tax. 3 per cent general sales tax." Another bill which is on record and which is part of the statement of the case in Sales Tax Reference No. 42 of 1979, however, shows the relevant items as follows : "General sales tax at 3 per cent. Surcharge on account of sales tax paid by us."