1967 (7) TMI 113 - HC - VAT and Sales Tax

Summary

Issues:
Assessment of sales tax on petitioners for years 1958-59, 1960-61, and 1961-62 under the General Sales Tax Act, 1125.
Controversy regarding contracts with the Kerala State Electricity Board and other customers.
Nature of contracts - sale of Dodge chassis or sale of vehicles inclusive of bodies.
Dispute over transactions with customers other than the Kerala State Electricity Board.
Property rights in chassis and bodies, and the passing of property.
Separate sale of bodies alone.
Claim of being the first seller in the State for a specific model truck.

Analysis:

The revision cases involved the assessment of the petitioners to sales tax under the General Sales Tax Act for the years 1958-59, 1960-61, and 1961-62. The petitioners, as dealers in motor vehicles, were authorized dealers of a company for Dodge trucks in Kerala State during the relevant years. The main contention was whether the contracts with the Kerala State Electricity Board and other customers were for the sale of Dodge chassis alone or for vehicles inclusive of bodies. The Appellate Tribunal found that the contracts were for vehicles with bodies, not just chassis.

The Appellate Tribunal observed that the petitioners did not press the argument that the contracts for body-building were only for execution of works, based on a previous decision. Therefore, the petitioners could not argue that the contracts were not for sale but for services. The Tribunal also examined the nature of the contracts between the petitioners and the Kerala State Electricity Board, concluding that they were for vehicles with bodies, not just chassis.

In one specific dispute, it was found that 11 vehicles supplied to the Kerala State Electricity Board had written contracts, while 7 vehicles supplied to other customers did not have written agreements. The Tribunal's decision was based on the contracts with the Electricity Board, and the petitioners' concession regarding the lack of written agreements for the other customers. The Tribunal was directed to reconsider cases involving transactions with customers other than the Electricity Board.

Regarding the passing of property rights, it was established that the property in the vehicles passed only after delivery in the State of Kerala, not before. The contracts showed that the intention was to sell vehicles with bodies, not just chassis. The petitioners' claim of being the first seller in the State for a specific model truck was rejected. The Tribunal's decision was confirmed in this regard.

In conclusion, one revision case was dismissed, while orders in other cases were set aside for reconsideration by the Tribunal. No costs were awarded in any of the cases.