INDIA TYRE SOLE CO Vs. ASSESSING AUTHORITY

JUDGEMENT

(1.) THE Simple question involved in this writ application is, whether materials used in the retreading of the old tyres brought to the petitioner can be treated as sale within the meaning of Section 2 Clause I of the General Sales Tax Act of 1962, and whether such sales can fall within the definition of the word "Turnover" as defined in Section 2 n of the said Act.

(2.) THE word "Sale" is defined as any transfer of property or good for consideration. The other part of the definition is not material. "Turnover" is aggregate of such sales by a dealer." Explanation No. 1, under it is material. It is as follows: - "The amount for which goods are sold shall in relation to a contract be deemed to be the amount payable to the dealer for carrying out such contract less the cost of labour". "Contract" is defined in Clause f of the said section, as including an agreement for fitting out, improvement or repairs of any movable property"

(3.) THE petitioner is a dealer in new tyres and tubes, and has a side business, of retreading old tyres brought to him for repairs by different customers In the process of such retreading, the petitioner has admittedly to use certain materials like rubber and solution etc and for such repairs he admittedly charges consolidated bills from the customers without specifying the charges incurred in relation to the materials On the assessment account of the petitioner for the year 1966 -67 the assessing authority at the appellate, stage being the Deputy Sales Tax Commissioner, by his order dated 13 -2 -1969, has made an order for assessing the sales tax on the materials used by the petitioner in the retreading of the old tyres. In so doing, he has assessed the value of such materials on the basis of goods imported on form C  by the petitioner. He has taken into account the total bills charged from the customers by the petitioner for retreading of the tyres and from the total amount of such bills, he has deducted the value of tog imported material, which came to Rs. 43.567.45 and treated the same as sale of goods.