BALLABHDAS PADDAR Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE Board of Revenue, Madhya Pradesh, Gwalior, which is the Tribunal constituted under the M. P. General Sales Tax Act, 1958 (in short "the Act") has referred to this Court the following three questions for its opinion under Section 44 (1) of the Act:

(2.) THE brief facts necessary to answer the aforesaid questions are that the assessee-applicant deals in scrap including iron scrap and was assessed to tax under the Act for the Diwali year 1972-73. The applicant had bid at an auction of old railway coaches, after payment of full tax. The coaches were required to be broken and the excluded fittings under the terms of the auction to be delivered to the railways and the remainder was to be removed by the applicant. Aggrieved by the orders passed by the assessing authority and the first appellate authority, the applicant preferred second appeal before the Tribunal and the Tribunal held that the goods purchased by the applicant were only the resultant scrap from the coaches. The resultant scrap which according to the Tribunal was purchased by the applicant-assessee included iron scrap, aluminium scrap, timber and glass, etc. In the instant case, we are concerned only with the sale of iron scrap, inasmuch as sales tax was assessed on the applicant on the sale of the said iron scrap.

(3.) IT has been urged by the Learned Counsel for the applicant that since iron scrap constituted declared goods under Section 14 of the Central Sales Tax Act, 1956 and since the petitioner had already paid sales tax at the stage of purchase of the iron scrap, no sales tax was payable at the stage of sale of the said iron scrap, by him subsequently. Reliance in support of this submission has been placed on Sections 14 and 15 (a) of the Central Sales Tax Act, 1956.