1985 (1) TMI 269 - SC - VAT and Sales Tax

What is the rate at which the goods which had been purchased earlier and which were in stock with the assessee on 30th June, 1974 were assessable to purchase tax when the purchases were found to be last purchases as a result of events which took place subsequent to 30th June, 1974? Held that - Appeal dismissed. Since the purchases took place before 30th June, 1974 the assessee would, in our opinion, liable to be taxed at the rate prevailing at the time when the purchases were made and since the rate at that time was 3% of the sale price, the High Court was right in taking the view that the purchases made by the assessee prior to 30th June, 1974 were taxable at the rate of 3%.

Summary

The Supreme Court determined the rate of purchase tax on goods purchased before 30th June, 1974, which were found to be last purchases after that date. The Court held that the purchases were taxable at the rate prevailing at the time of purchase, which was 3%. The appeal was rejected with no costs. (Case citation: 1985 (1) TMI 269 - Supreme Court)