CONTROLLER OF STORES Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THIS application under section 61 (2) of the Bombay Sales tax Act, 1959 ("bst Act" for short) is at the instance of the applicant, Central railway who is one of the departments of the Government of India engaged in the transportation of goods and passenger traffic. The catering department of the railway serves food and non-alcoholic drinks to the travelling passengers.

(2.) THE Catering Department was holding Sales Tax RC No. NIA 10101 up to 28th November, 1962. Tax was being paid regularly till then. The Deputy commissioner of Sales Tax by his order passed under section 52 bearing No. 1068/76/b. 5932 dated 24th October, 1968 held that the Railway Catering department is not liable to pay sales tax. On this basis R. C. registered certified stood cancelled and, accordingly, Catering Department of the Railway stopped collecting and depositing sales tax.

(3.) ONE of the officers of the Central Railway by designation the controller of stores was entrusted with the work of disposing of old, obsolete and scrap materials of the Railway. Till 14th January, 1975, the Railway was not registered as "dealer" under section 2 (11) of the B. S. T. Act. __________________