NIRANJAN MILLS LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) BY this reference under section 61 (1) of the Bombay Sales Tax Act, 1959 made at the instance of the assessee, the Maharashtra Sales Tax Tribunal has referred the following question of law to this Court for opinion :

(2.) THE assessee, M/s. Niranjan Mills Ltd. , was carrying on business in Bombay. Initially, it had no fixed place of business in Bombay. It was carrying on its business activities in Bombay from its Delhi Office. In respect of its business in Bombay, it was, therefore, registered under the Bombay Sales Tax Act, 1959 ("act") as a "non-resident dealer" with effect from 20th April, 1966. Subsequently, it opened a place of business in Bombay. Soon thereafter, it applied for cancellation of the registration certificate granted to it as a non-resident dealer and for grant of fresh registration certificate as dealer in the State. On the above application of the assessee, the Sales Tax Officer cancelled the registration certificate earlier granted to the assessee as a non-resident dealer and issued a fresh certificate in respect of his place of business situated in Bombay with effect from 1st July, 1975.

(3.) IT appears that the assessee had also opened another place of business at Madhavnagar in Sangli District in the State of Maharashtra. No separate application for registration was however made by the assessee to the registering authority having jurisdiction over Sangli in respect of the place of business at Sangli. The Sales Tax Officer, Sangli, having learnt about the said place of business, visited the same on 18th November, 1977. On such visit, he noticed that though the assessee was required under the rules to make an application to him for registration in respect of its above place of business, he had not done so. He, therefore, took possession of five books of account found at the above place of business for scrutiny. On perusal of the same, it appeared that the assessee had effected substantial turnover of sales and collected taxes on such sales separately in addition to the price of the goods. The figures of the turnover of sales of the assessee of the above place of business and tax collected thereon during the period from 1st April, 1975 to 17th May, 1977 are as below : eriod