2005 (2) TMI 806 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the term 'sale' under the Haryana General Sales Tax Act, 1973 regarding the transfer of right to use cranes and heavy vehicles by contractors.
2. Determination of whether supplying tender documents and application forms to contractors constitutes a sale, and if the petitioner qualifies as a 'dealer' for such transactions.

Analysis:

1. The petitioner, a government-owned company engaged in manufacturing and trading fertilizers, faced an additional tax demand due to alleged transfer of right to use cranes and equipment, and sale of tender forms. The Assessing Officer finalized the assessment in 1987-88, leading to subsequent appeals and rejections by the Joint Excise and Taxation Commissioner and the Sales Tax Tribunal in Haryana. The petitioner then sought a reference to the High Court under section 42(2) of the Act.

2. The High Court, after hearing arguments from both parties and reviewing relevant judgments, including the Supreme Court's ruling in State of Andhra Pradesh v. Rashtriya Ispat Nigam Ltd., deemed the questions raised by the petitioner as substantial questions of law requiring determination. Consequently, the High Court allowed the application and directed the Tribunal to refer the questions regarding the transfer of right to use cranes and heavy vehicles, as well as the sale of tender documents, to the High Court for opinion. The Tribunal was instructed to submit a statement of case and send the records for further examination by the High Court.