1973 (7) TMI 105 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of claiming concessional rate of tax based on C form declarations for sales to registered dealers.
2. Eligibility for concessional rate of tax based on D form declarations for sales to a department of the Government.

Analysis:
1. The petitioners claimed a lower rate of tax for sales to registered dealers by producing C form declarations. However, the declarations specified the purpose of purchase as manufacture or mining, not resale. Authorities held the C forms defective as the goods were not purchased for resale. The court upheld this view, stating that for declared goods during the assessment year in question, the concessional rate of tax was only available if the inter-State purchase was for resale. Thus, the petitioners were rightly denied the benefit of the concessional rate of tax based on the purpose mentioned in the C form declarations.

2. Regarding sales to the Regional Housing Engineer, Hyderabad Housing Board, the petitioners relied on D form declarations claiming the concessional rate of tax. However, authorities found the Housing Board not to be a department of the Government, rendering the D form declarations invalid for claiming the benefit. The court emphasized that the crucial factor was whether the sale fell under section 8(1)(a) of the Central Sales Tax Act, which pertains to sales to the Government. As the authorities determined that the Housing Board was not a government department, the petitioners were ineligible for the concessional rate of tax. The court accepted the Tribunal's finding that the Housing Board did not qualify as a department of the Government, thereby rejecting all contentions raised by the petitioners and dismissing the tax case with costs.