9911796707
TMI Blog1984 (3) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... he following questions have been referred to this Court by the Board of Revenue under section 15 of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act"). "(i) Whether the disposal of coal-ash through auction or contract is incidental or ancillary to the trade of Railways? (ii) Whether penalty under section 16(1)(b) and (c) can be imposed for the periods 1957-58 and onward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to pay sales tax on the sale of coal-ash. The aforesaid order of the Commercial Taxes Officer was affirmed in appeal by the Deputy Commissioner, Commercial Taxes (Appeals) as well as by the Board of Revenue. Thereupon the aforesaid questions have been referred to this Court. Seven references have been made at the instance of the District Electrical Engineer, Western Railway, Ajmer and seven r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough auction or contract is incidental or ancillary to the trade of railways, it may be stated that the said question really involves determination of the question as to whether the Western Railway can be held to be a "dealer" under section 2(f) of the Act and whether the sale of coal-ash by the Western Railway can be regarded as "business" as defined in section 2(cc) of the Act. It may be menti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it. In the said case this Court has placed reliance on the decision of the Supreme Court in District Controller of Stores, Northern Railway, Jodhpur v. Assistant Commercial Taxation Officer [1976] 37 STC 423 (SC) wherein it has been held that the activity of the Railway involved in selling unserviceable material and scrap-iron, etc., would be business as defined in the Act, and that the Railway, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction or contract is incidental or ancillary to the trade of Western Railway and the Western Railway has been rightly held liable to pay sales tax on the sales of coal-ash. Question No. (i) referred by the Board of Revenue must, therefore, be answered in favour of the department and against the petitioners. In the result question No. (i) is answered in the affirmative and questions Nos. (ii) and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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