- (1.) The following question was referred for the consideration of the High court under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958 ('the Act') : "Whether under the facts and circumstances of the case, the iron and cement supplied by the PWD to the assessee for use in the works executed by the appellant for PWD was sale and was liable to purchase tax under Section 7 (1 of the Act. "
(2.) The High court answered the question against the assessee and in favour of the Sales Tax Department. This appeal by special leave is by the assessee against the judgment of the High court.
(3.) Section 7 of the Act which is relevant is reproduced hereunder : "7.Levy of purchase tax. (1 Every dealer who in the course of his business purchases any taxable goods from a registered dealer in circumstances in which no tax under Section 6 is payable on the sale price of such goods or from any other person and either consumes such goods in the manufacture of other goods for sale or otherwise or disposes of such goods in any manner other than by way of sale in the State or despatches them to a place outside the State except as a direct result of sale or purchase 100 in the course of inter-State trade or commerce, shall be liable to pay tax on the purchase price of such goods at the same rate at which it would have been leviable on the sale price of such goods under Section 6. ";