2012 (3) TMI 387

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..... ner amounts to sale that attracts sales tax? Held that: - it is the purchase and sale of spare parts by the petitioner as authorised dealer of the manufacturer and the replacement therefor is resale effected by the petitioner for which payment is received through credit note issued by the manufacturer - free replacement of parts during warranty period amounts to sale of such parts - revision allow .....

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..... mmissioner of Trade Tax, U.P. reported in [2004] 136 STC 515 (SC). However, the learned counsel for the petitioner relied on the single Bench decision of the Rajasthan High Court in Commercial Tax Officer (Anti-Evasion), Jodhpur v. Marudhara Motors reported in [2010] 29 VST 114 (Raj), wherein the Rajasthan High Court after distinguishing the decision of the honourable Supreme Court held that free .....

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..... etitioner by stating that, on facts, the transaction is a pure sale because manufacturer is not sending parts free of cost for replacement. On the other hand, the system is for the petitioner to purchase spare parts in bulk from the manufacturers and others and stock the same. As a dealer, the petitioner replaces the automobile parts by utilising the stock held by them, either purchased from vehic .....

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