9911796707
TMI Blog1976 (7) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... the case so far as Central sales tax is concerned. Orders passed by the Sales Tax Appellate Tribunal in all the six appeals, affirmed as it were by the High Court, are correct and these appeals deserve to be dismissed. - C.A. Nos. 1393, 1394, 1395, 1396, 1397, 1398 of 1975, - - - Dated:- 27-7-1976 - KHANNA H.R., KRISHNA IYER V.R. AND UNTWALIA N.L. JJ. V.P. Raman, Additional Solicitor-General of India (G.L. Sanghi, Senior Advocate, and Girish Chandra, Advocate, with him), for the appellant. A.K. Sen, Senior Advocate, and P.P. Rao, Advocate, with him, for the respondent. -------------------------------------------------- The judgment of the Court was delivered by KRISHNA IYER, J.- This batch of cases between a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax Act, 1957 (Act 6 of 1957) (for short the State Act), and the Central Sales Tax Act, 1956 (for short the Central Act). This was complied with in six returns for the span of three years but was coupled with a plea of immunity from tax on grounds which will be presently discussed. The adverse fate of these contentions at the hands of the Sales Tax Officer and the appellate officer eventuated in further appeals to the Tax Tribunal. The three appeals covered by the Central Act were remanded for the narrow purpose of determin- ing the presence of profit-motive in the Central Government, while undertaking these dealings as that element is decisive of the appellant being a dealer doing business and, therefore, liable to tax under the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax itself. Counsel was cautious to concede that legally it was not impossible for the Central Government as a statutorily empowered agency to collect tax that falls due from it as an assessee. Indeed, if the statute clearly states that government is liable to pay tax qua dealer, it is not a legal plea to say that government is also the taxing authority. We have therefore to examine whether there is any necessary exclusion from exigibility or other provision of immunisation which can be spelt out of section 2 or section 9. Section 2(b) of the Central Act reads: "2. (b) In this Act, unless the context otherwise requires,- 'dealer' means any person who carries on the business of buying or selling goods, and includes a Government which ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modities by the State in implementation of its governmental obligations cannot be described as "trading" activity or carrying on of "business" without doing violence to the concepts of governmental functions and business operations. Indubitably the State has the power to carry on trade or business as is manifest from article 19(6)(ii) and other provisions. Indubitably, the State distributes essential commodities in a fair and equitable way for the survival of the community under its protection. It does not follow that we cannot harmonize the two functions. It is well on the agenda of State activity that it carries on trade or business in essential commodities because it has the power to do so and because it is obligated to ensure even distr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r or not "with a motive to make gain or profit and whether or not any gain or profit accrues therefrom". Profit-making in the State Act, it was conceded by the counsel for the Union, was irrelevant in contrast to its pertinence in the Central Act. If this be the correct position in law, it follows that the State Sales Tax Officer is entitled to collect sales tax from the appellant in regard to intra-State sales even assuming that there is no profit-motive or profit-accrual. The reverse is the case so far as Central sales tax is concerned. In the result the orders passed by the Sales Tax Appellate Tribunal in all the six appeals, affirmed as it were by the High Court, are correct and these appeals deserve to be dismissed. We are consciou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
