MOHAMMAD AMIN BROTHERS LTD Vs. PROVINCE OF BIHAR

JUDGEMENT

(1.) IN pursuance of an order of the High Court this reference is made by the petitioner under Section 25(3) of the Bihar Sales Tax Act, 1947.

(2.) THE questions formulated for the determination of the High Court are : "(1) Whether in the circumstances of the case of the assessee was a dealer within the meaning of Section 2(c) of the Bihar Sales Tax Act, 1944, (2) Whether the assessee was liable to pay sales tax in respect of the quarters ending the 31st December, 1944, and the 31st March, 1945, and (3) Whether the assessee was liable to pay the penalty."

(3.) ON the second question Mr. S. N. Dutt stressed the argument that the assessee was a mere labour contractor and he had not entered into any contract with the Government of India for sale of goods within the meaning of Section 2(g) of the Bihar Sales Tax Act. As I have mentioned, the contract between the assessee and the Government of India has not been printed but the findings of the Board of Revenue are that according to the terms of the contract the plant and machineries were provided by the Government; dressed goat meat was supplied to the assessee by another contractor at a fixed price on certain terms agreed to between the Government of india and that contractor. It is important to notice that the assessee himself paid for the dressed meat at a price fixed by the Government and that the assessee was entitled to receive payment from the Government of India according to a fixed scale for the dehydrated meat including the cost of containers and packing. The Board of Revenue has found that according to the stipulation of the contract an inclusive price was fixed for processed meat to be packed in sealed containers at a prescribed rate. To my mind there is no doubt that there was a transfer of property for valuable consideration and therefore a "sale" within the meaning of Section 2(g) of the Bihar Sales Tax Act. The contention of the assessee on this point fails.