DISTRICT ELECTRICAL ENGINEER Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THESE references raise common questions for consideration and, therefore, they are being disposed of by a common order. In all these references the following questions have been referred to this Court by the Board of Revenue under section 15 of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act" ). " (i) Whether the disposal of coal-ash through auction or contract is incidental or ancillary to the trade of Railways ? (ii) Whether penalty under section 16 (1) (b) and (c) can be imposed for the period 1957-58 and onwards when the registration order was passed in the year 1966 ? (iii) Whether the realisation of tax on coal-ash would be justified when tax was already realised when the coal was purchased ?"

(2.) THE facts lie within a very short compass. During the assessment years 1958-59 to 1964-65, Western Railway had a power house at Ajmer wherein coal-ask was produced as a waste product. THE said coal-ask was sold by auction in lots by the District Electrical Engineer of the Western Railway at Ajmer. During the assessment years 1957-58 to 1963-64, coal-ash produced as a waste product was collected and the same was sold by auction in lots by the Divisional Engineer of the Western Railway. THE Commercial Taxes Officer held that Western Railway was a dealer in coal-ash for the purpose of the Act and was liable to pay sales tax on the sale of coal-ask. THE aforesaid order of the Commercial Taxes Officer was affirmed in appeal by the Deputy Commissioner, Commercial Taxes (Appeals) as well as by the Board of Revenue. THEreupon the aforesaid questions have been referred to this Court. Seven references have been made at the instance of the District Electrical Engineer, Western Railway, Ajmer and seven references have been made at the instance of the Divisional Engineer, Western Railway, Ajmer.