SHRIGOPAL INDUSTRIES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) BY order dated 3rd August, 1972, passed under section 15 of the Rajasthan Sales Tax Act (hereinafter referred as "the Act"), the Board of Revenue has referred the following question for the opinion of this Court : " Whether the sale of the machinery, iron or steel defectives or spare parts can be considered as 'business' within the meaning of section 2 (cc) of the Rajasthan Sales Tax Act, 1954 (Act No. 29 of 1954) ?"

(2.) SHRI Gopal Industries Limited, petitioner (hereinafter referred to as "the assessee"), carries on business of manufacture of cotton yarn which is the principal business of the assessee. The assessee decided to modernise their plant and in that connection sold iron and steel defectives and used machinery during the period 1st July, 1960, to 3rd June, 1961, and 1st July, 1961, to 3rd June, 1962. The Commercial Taxes Officer taxed the aforesaid sales of iron, steel and defective machineries and spare parts on the ground that the said sales were made in regular course of business conducted by the assessee. The said order of the Commercial Taxes Officer was reversed in appeal by the Deputy Commissioner (Appeals ). The Board of Revenue in revision restored the order of the Commercial Taxes Officer. Thereupon, the assessee moved an application for referring the question aforesaid to this Court and this reference has been made.