1994 (1) TMI 251 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the transfer of tractors constitutes a sale transaction.
2. Whether the transfer of tractors is taxable under the Sales Tax Act.

Analysis:
The petitioner, a registered dealer, transferred 40 tractors to the Agriculture Department and received payment, contending it was not a sale. The Regional Assistant Commissioner assessed sales tax on the transaction, upheld in subsequent appeals. A remand order for reassessment was issued for the 1972-73 tax year. The petitioner sought reference on whether the transfer constituted a sale and was taxable. The petitioner argued against reopening the assessment based on a previous finding. The High Court found the Board of Revenue independently concluded the transfer was a sale based on evidence, rejecting the petitioner's argument. The Court upheld the Board's decision, citing the petitioner's actions as indicative of a sale, dismissing the petition under section 44(2) of the Sales Tax Act.

Conclusion:
The High Court dismissed the petition, affirming the Board's decision that the transfer of tractors to the Agriculture Department constituted a sale transaction subject to sales tax. The Court found no legal issue to consider, as the transfer for a sale consideration was deemed a factual finding. The petitioner's argument against reopening the assessment based on a previous finding was rejected, and the petition was dismissed with costs.