DIVISIONAL FOREST OFFICER Vs. ASSESSING AUTHORITY

JUDGEMENT

(1.) THE present reference, under section 33 of the Himachal Pradesh General Sales Tax Act, 1968, has been made by the Himachal Pradesh Sales Tax, Tribunal, Dharamshala, for adjudication of the following questions :

(2.) FACTUAL background in which the reference has been made may be stated. On October 6, 1978, Divisional Forest Officer, Nahan, put to auction 40 lots of standing timber trees, in accordance with the terms and conditions of auction, which had been published and notified, well in advance. One Amar Singh was the highest bidder at the auction. It was one of the conditions of the auction that the bids will remain open for thirty days to enable the competent authority to consider and examine the bids and to accord necessary sanction, and in the meanwhile, bidders could withdraw the bids. It appears that the highest bid was ultimately accepted. At the time when the auction took place and also up to the date of expiry of 30 days period, available for withdrawal of the bid by the bidder and sanction of the bid by the competent authority, rate of sales tax was 10 per cent of the sale consideration. This rate was revised to 25 per cent with effect from February 1, 1979. It appears, sanction to accept the bid was accorded in the month of March, 1979 and the lease deed, on behalf of the Forest Department, was also executed in the month of March, 1979, though on behalf of the highest bidder, the lease deed was signed in the month of October, 1978 itself, i.e. on the very date of auction.

(3.) WE have heard the learned counsel for the Divisional Forest Officer as also the learned Additional Advocate - General representing the sales tax authorities.