Dismissed

The Commissioner of Sales Ta Maharashtra State Mumbai v. Blue Chip Tex Fuel Industries Ltd.

Bombay HC9 Feb 2007STA/6/2006

Case brief

AI extract

What is this about?

Court dismissed four reference applications filed by the Revenue. It confirmed that the Sales Tax Tribunal correctly recorded findings of fact regarding the storage of goods and conclusion that the assessing authority failed to prove an agency relationship for tax purposes. The applications were rejected as not fit for Statement of Case. Resolution dated 09/02/2007.

What did the court decide?

The Reference Applications filed by the Commissioner of Sales Tax were dismissed.

The Commissioner of Sales Ta Maharashtra State Mumbai Vs… — Specific Performance | Bombay HC (2007)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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ORDINARY ORIGINAL CIVIL JURISDICTION

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SALES TAX APPLICATION NO.6 OF 2006

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REFERENCE APPLICATION NO. 31,32,33 AND 34 OF 2004

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WITH

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SALES TAX APPLICATION NO.13 OF 2006 IN

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REFERENCE APPLICATION NO. 31,32,33 AND 34 OF 2004

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WITH

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SALES TAX APPLICATION NO.14 OF 2006 IN

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REFERENCE APPLICATION NO.31,32,33 AND 34 OF 2004

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WITH SALES TAX APPLICATION NO.15 OF 2006

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REFERENCE APPLICATION 31,32,33 AND 34 OF 2004

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The Commissioner of Sales Tax Vs.

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..Applicant

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M/s.Blue Chip Text Fuel Industries Ltd. ..Respondent

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Mr.P.G.Sawant, A.G.P.for the Applicant. Mr.B.C.Joshi with Mrs.N.R.Badheka for the Respondent.

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CORAM :- DR.S.RADHAKRISHNAN & J.P.DEVADHAR,JJ.

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DATE : 9TH FEBRUARY,2007

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P.C.

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1.		All thes	e four	Application	s filed	under
Section	61	of	the	Bombay	Sales	Tax	Act,	1959	arise
from	a	common	orde	r passed	by	the	Sales	Tax	Tribunal,
Mumbai	o	n 28th		September,2	005.		In	all	these

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Applications, the common questions raised by the

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Revenue are :-

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a) Whether the Tribunal was justified in holding that the sales effected by Appellant after importing the goods Maharashtra and after storing them	the in with
M/s.S.P.Thakkar, Clearing Agent, does	not
amount to termination of movement as held	in
M/s.Arjandas Gupta and Others	Vs.
Commissioner of Sales Tax (45 STC 52) and not liable to tax under B.S.T.Act,1959.
b) Whether Hon’ble Tribunal was justified after going through the mentioned	six
documents and holds that none of the relied upon by the assessing authority to	document hold
that M/s.S.P.Thakkar had stored the goods the Appellant’s agent can be said to conclusively prove such a relationship ?	as

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2.	The f	acts relevant f	or the purpose o	f these
Applications	are	that	the	Respondent	deals	in
texturised	yarn.	The	Respondent	has	a unit	at
Silvassa,	where	artificial	yarn	is	produced	and

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subsequently sold. The Respondent is also having an office at Mumbai.

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The artificial yarn manufactured at Silvassa Unit is sold to various parties in Maharashtra.

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4.	The	sales effected in	Maharashtra	by
despatching	the	goods from	their	Silvassa	Unit	through
their	transporters	and	making	endorsements	on	the
lorry receipts,	were claimed	by the Respondent to	be
interstate sales	.

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5.		On in	vestigatio	n by the Enfo	rcement Branch,	it
was	found	that	the	goods	despatched	from	Silvassa	were

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stored	in a	Godown	at Bhivandi	an	d	thereafter	the	said
goods	were	sold.	According	to	the	Applica	nt,	the
goods	were	unloaded	at Bhivandi	at	the	instance	of	the
Respondent		and	therefore,	the		sales		effected

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thereafter were local sales. Accordingly, assessment

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orders were passed.

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6.	On Ap	peal filed	by the Respo	ndent, the	first
Appellate	Authority		confirmed	the	asse	ssments.	On
second	Appeal,	the	Sales	Tax	Tribunal	allow	ed the
claim	of the	Respo	ndent.	On	a	reference	Applications
filed	by the	Appli	cant,	the	Sales	Tax	Tribunal
dismissed	the same	by	holding	that	the	decision	of the

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Tribunal was based on finding of facts. Hence, these

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Reference Applications have filed by the Applicant.

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7.	From	the order	passed by the Tribunal, it is
seen that the		Tribunal	has came to	the	con	clusion	that
the goods	des	patched	from Silvassa	were	stored	in	the
godown of	M	/s.S.P.Tha	kkar at Bh	iwandi		by	the
Transporter and	that	the	Respondent was	not	in	any	way
connected with		the	said godown.	The	Trib	unal	has
arrived at	th	e abo	ve conclusion on	the	basis	of	the
statements rec	orded	u	nder Section 53	of	the	B	ombay
Sales Tax Act	.	The	Tribunal has	further	held	that	the
six documen	ts	relied	upon by the	Asses	sing	Officer	do
not conclusiv	ely	prove	that the goods	wer	e sto	red	in
the godown	for	and	on behalf of the	Res	pondent.		The
findings recorded		by t	he Tribunal are	fi	ndings	of	fact

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and therefore, rejection of the Reference Applications by the Sales Tax Tribunal on the ground that it is not

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a fit case for drawing up a statement of the case cannot be faulted.

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In the result, the Reference Applications

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filed by the Commission of Sales Tax are dismissed.

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(J.P.DEVADHAR,J.)

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(DR.S.RADHAKRISHNAN,J.)

The Commissioner of Sales Ta Maharashtra State Mumbai v. Blue Chip Tex Fuel Industries Ltd.

Case brief

What is this about?

What did the court decide?

The Commissioner of Sales Ta Maharashtra State Mumbai v. Blue Chip Tex Fuel Industries Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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