1981 (7) TMI 212 - SC - VAT and Sales Tax

Whether the transactions in this case constituted a sale for the purpose of the Haryana General Sales Tax Act and the Central Sales Tax Act? Held that - Appeal allowed. The High Court should not have proceeded beyond recording the assurance that the State Government would withdraw the instructions and holding that therefore the writ petition had become infructuous. In our opinion no further question arose for consideration by the High Court. The High Court erred in pronouncing on the merits of the question whether the transaction constituted a sale under the aforesaid sales tax enactments. It will be for the Assessing Authorities to deal with the question on the merits in accordance with law.

Summary

The Supreme Court overturned the High Court's decision in a writ petition regarding the taxation of rice supply to the State Government, stating that the High Court should not have ruled on the matter. The Assessing Authorities were instructed to decide on the issue without considering the government's instructions. The appeal was disposed of with no costs awarded.