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The Commissioner of Sales Tax Vs. SaThe Biscuits and Chocolate Co. Ltd. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtMumbai High Court
Decided On
Case NumberS.T.R. No. 34 of 1972
Judge
Reported in(1976)5CTR(Bom)454
ActsBombay Sales Tax Rules, 1959 - Rule 41
AppellantThe Commissioner of Sales Tax
RespondentSaThe Biscuits and Chocolate Co. Ltd.
Appellant AdvocateR.A. Dada, Adv.
Respondent AdvocateR.V. Patel, Adv.
Excerpt:
- .....set-off to which the respondents were entitled was under the explanation to r. 41 of the bombay sales tax rules, 1959 during the period january 1, 1960 to july 15, 1962 and under rule 41a of the said rules during the period july 16, 1962 to march 31, 1963. 3. in sales tax reference no. 20 of 1972, the commissioner of sales tax vs. m/s. jai hind mills co., which we have decided today, we have determined an identical question arising under rule 41. the material provisions of rule 41a are similar to the provisions of rule 41, which we have considered in that case. though there are variations between the relevant provisions of rule 41a of the bombay sales tax rules, 1959, both sides are agreed that these variations make no difference to the question to be determined by us, and our.....
Judgment:

Madon, J.

1. This is a consolidated Reference made at the instance of the Commissioner of Sales Tax under section 61(1) of the Bombay Sales Tax Act, 1959, in respect of four assessment period viz. January 1, 1960 to March 31, 1960, April 1, 1960 to March 31, 1961, April 1, 1961 to March 31, 1962 and April 1, 1962 to March 31, 1963.

2. This Reference also deals with the amount of set-off to be given to a dealer in respect of the tax paid by him or collected from him on purchase of raw materials which have gone into the manufacture or taxable goods for sale or as packing materials and containers for such manufactured goods which have been despatched by the manufacturing dealer to his branches outside the State but within India and sold by such branches complying with the conditions prescribed in that behalf. The set-off to which the respondents were entitled was under the Explanation to R. 41 of the Bombay Sales Tax Rules, 1959 during the period January 1, 1960 to July 15, 1962 and under Rule 41A of the said Rules during the period July 16, 1962 to March 31, 1963.

3. In Sales Tax Reference No. 20 of 1972, The Commissioner of Sales Tax vs. M/S. Jai Hind Mills Co., which we have decided today, we have determined an identical question arising under Rule 41. The material provisions of Rule 41A are similar to the provisions of Rule 41, which we have considered in that case. Though there are variations between the relevant provisions of Rule 41A of the Bombay Sales Tax Rules, 1959, both sides are agreed that these variations make no difference to the question to be determined by us, and our decision on S.T. Ref. No. 20 of 1972 would also govern this case. We, however, find that in this case also, the question has not been properly framed and we accordingly reframed the question submitted to us into two questions :

'1. Whether having regard to the facts and circumstances of the case and on a true and correct interpretation of Rule 41 of the Bombay Sales Tax Rules, 1959, the Tribunal was correct in law in holding that the reduction under clause (III) of the first proviso to the Explanation to Rule 41 is to be made only from the set-off refund or drawback, as the case may be, due to a dealer in respect of the purchase of goods used in the manufacture of taxable goods for sale or as packing materials or containers for such manufactured goods in cases where such manufactured goods have been sold in the manner provided for in the Explanation to the said Rule 41 read along with clauses (i) and (ii) of the said proviso

2. Whether having regard to the facts and circumstances of the case and on a true interpretation of Rule 41A of the Bombay Sales Tax Rules, 1959, the Tribunal was correct in law in holding that the reduction under clause (y) of the proviso to the Explanation to Rule 41A is to be made only from the set off, refund or drawback, as the case may be, due to a dealer in respect of purchase of goods used in the manufacture of taxable goods for sale or as packing materials or containers for such manufactured goods in cases where such manufactured goods have been sold in the manner provided for in the Explanation to the said Rule 41A read alongwith clause (x) of the proviso thereto ?'

4. For the reasons stated in our judgment in S.T. Reference No. 20 of 1972 and inasmuch as the parties are agreed that the same reasoning applies to the determination of the second question as reframed by us, we answer both the above questions so reframed in the affirmative. The Applicant will pay to the Respondents the costs of this Reference fixed at Rs. 250/-.


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