1984 (12) TMI 288 - HC - VAT and Sales Tax

Summary

Issues:
Petitions under section 21(2) of the Bombay Sales of Motor Spirit Taxation Act, 1958 for referral to the High Court for determination of questions regarding refund on admitted shortage of sale of motor spirit.

Analysis:
The judgment delivered by the High Court of Bombay pertains to four petitions under the Bombay Sales of Motor Spirit Taxation Act, 1958, seeking direction to the Sales Tax Tribunal for forwarding statements of the case and referring questions for determination. The main question raised was whether the sales tax department should have ordered a refund for admitted shortage of motor spirit sales. The assessment years in question were 1970-71, 1973-74, 1974-75, and 1975-76. The petitioner, a company operating a petrol pump, claimed a refund due to losses from leakages and evaporation of motor spirit purchased from Caltex (India) Ltd. The petitioner's appeals and revision applications were dismissed by the Taxation Officer, Assistant Collector, and Additional Collector, respectively, leading to the petitions before the High Court.

The Court examined the relevant provision for refund under the Motor Spirit Taxation Act, specifically rule 15 of the Motor Spirit Taxation Rules. The rule allows for a refund if the purchasing trader stores the motor spirit in the selling trader's storage installation and incurs losses due to leakages or evaporation. However, in this case, the losses occurred in the tanks of the purchasing dealer, not the selling trader, rendering the rule inapplicable. Additionally, the petitioner failed to prove that the selling trader granted a refund for the lost quantity of motor spirit. Consequently, the Tribunal's decision to reject the revision applications was deemed correct by the Court.

The Court also addressed the petitioner's claim that Caltex (India) Ltd. did not remit the full tax amount collected from them to the government. However, the Court stated that such grievances should be pursued separately against Caltex (India) Ltd. and were not relevant to the current petitions. The Court emphasized that the lack of evidence on record regarding this issue precluded its consideration. Furthermore, the Court dismissed the petitioner's complaint about the government withholding information on tax payments by Caltex (India) Ltd., stating that it was not within the scope of the current proceedings.

In conclusion, the High Court dismissed the petitions and discharged the rule in all cases. The Court noted the petitioner's representation by a director instead of a lawyer and decided not to award costs considering the circumstances of the case.