COMMISSIONER OF SALES TAX Vs. COMMERCIAL AUTOMOBILES

JUDGEMENT

(1.) THE Board of Revenue, M. P. , Gwalior, has referred the following three questions to this Court for its answer under Section 44 of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act" ):

(2.) WE have heard counsel for the parties. As regards questions Nos. (i) and (ii), it may be pointed out that these very questions were referred to this Court and came up for answer before a Division Bench in Commissioner of Sales Tax v. Chhogalal and Sons [1984] 55 STC 200. They were answered in favour of the assessee and against the department. In view of this decision, questions Nos. (i) and (ii) are answered in favour of the assessee and against the department.

(3.) AS regards question No. (iii), the Tribunal has held that sale of old staff car would not be covered by the term "business", and the assessee was not liable to pay tax on that item. The facts in a nutshell necessary for answering question No. (iii) are that the assessee is a dealer in trucks, petrol, diesel, etc. The assessee had purchased a staff car which was subsequently sold and it is in this connection that the question as to whether the price for which the staff car was sold could be included in the taxable turnover of the assessee or not, had arisen for consideration.