1991 (4) TMI 427 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of implied purchase of empty gunny bags in transactions of groundnuts.
2. Determination of whether there was an implied contract to purchase empty gunny bags.
3. Consideration of evidence and conduct of parties to decide on implied purchase.
4. Challenge of Tribunal's finding as perverse and consideration of additional evidence.
5. Justification of Tribunal's decision based on evidence and inferences drawn.

Analysis:
The Gujarat Sales Tax Tribunal referred a question to the High Court regarding the implied purchase of empty gunny bags in transactions of groundnuts, seeking a decision on the admissibility of the value of these bags for deduction from turnover under the Gujarat Sales Tax Act, 1969. The Court noted that the determination of an implied contract to purchase empty gunny bags was a factual issue based on evidence and conduct of the parties, rather than a legal principle. The Court emphasized that no material was produced before the Assistant Commissioner or the Tribunal to support the contention that the price paid for groundnuts included the cost of gunny bags. Therefore, the argument that the Tribunal's finding was perverse due to overlooking such evidence was not accepted. The Court also dismissed challenges to the Tribunal's finding, including the non-consideration of a certificate from Mahuva Chambers of Commerce, as the certificate was not produced before the Assistant Commissioner and lacked supporting material from the applicant's account books. The Court clarified that the Tribunal's inference regarding the price of gunny bags was based on available evidence and did not render the finding perverse.

The Court declined to answer the question referred by the Tribunal, stating that it was a question of fact, not a question of law. The Court disposed of the reference without any order as to costs, emphasizing the factual nature of the issue at hand. The decision highlighted the importance of evidence and conduct in determining the existence of an implied contract for the purchase of empty gunny bags in transactions of groundnuts. The Court's analysis focused on the lack of supporting material and the Tribunal's reliance on available evidence to draw inferences regarding the pricing and purchase of gunny bags. Ultimately, the Court's decision underscored the factual nature of the issue and the need for substantive evidence to support claims of implied purchases in such transactions.