9911796707
TMI Blog1977 (11) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... sment period in question as also the subsequent periods certain questions arose in their assessments, all of which were decided against the respondents by the sales tax authorities. The respondents ultimately went to the Sales Tax Tribunal, and the revision applications in respect of the periods under the Bombay Sales Tax Act, 1953, and their second appeal under the Bombay Sales Tax Act, 1959, were all heard together and disposed of by the Tribunal by a common judgment, deciding all those questions in favour of the respondents. Thereupon, the applicant made separate applications for reference in each of these eight matters. The Tribunal framed three questions of law as asked for by the applicant in all the eight matters and referred them by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nghavi, the learned counsel for the applicant, has stated before us that he does not desire us to answer that question inasmuch as the sale of waste material, namely, scrap films, made during the period in question amounted to only Rs. 36. Similarly, with respect to question No. (3), Mr. Sanghavi has stated that he does not desire us to answer that question inasmuch as during the period in question there was no sale of raw films by the respondents. The facts necessary to understand how the first question arises for our determination are very few. For the purpose of processing the films the respondents used hypo water which is a silver nitrate compound. In respect of hypo water which had been used by the respondents for processing films th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he right to check the capacity of the said barrels at any time, before or after they are filled with the waste hypo water from our storage tanks." It was the respondents' contention that there was no sale of hypo water by them to the said firm, but what was being done was that a licence was granted by the respondents to the said firm to extract silver from hypo water in consideration of a certain amount to be paid by way of royalty by the said firm to the respondents. In the alternative, the respondents contended that assuming there was a sale, the sale was of silver and not of hypo water, and these transactions of sale were, therefore, taxable under entry 23 of Schedule B to the Bombay Sales Tax Act, 1953, which prescribed the rate of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parlance. When a material is sold and if by some process another material can be extracted therefrom, to say that the sale is of the material extracted is to our mind doing violence to common-sense and logic. If such an argument were true, it would amount to saying that when a person sells a silver mine what he is really selling is silver because the mine is purchased for the purpose of extracting silver therefrom. The said firm purchased hypo water. They took it away in gallons. They paid for it at a particular rate per gallon of hypo water. Thus, all the incidence of the contracts between the respondents and the said firm show that this was a sale of liquid, namely, hypowater. The rate that was fixed depended upon the quantity of hypo wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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