- (1.) The High court at Bombay rejected the sales tax application made on behalf of the Commissioner of Sales Tax, Maharashtra to direct the Sales Tax tribunal to refer to the High court the following question: "Whether the tribunal was correct in holding that in purchasing materials for the construction of the barges intended for use in the business of sea transport the opponent company was not carrying on the business of buying goods and hence was not a dealer as defined by clause (II) of Section 2 of the Bombay Sales Tax Act, 1959"
(2.) The High court rejected the application in limine staling that the Sales Tax tribunal had been right in holding that the case was covered by the High court's decision in Famous Cine Laboratory and Studio Ltd. v. State of Maharashtra The Commissioner of Sales Tax has been given special leave to appeal.
(3.) The assessee (respondent) carries on the business of hiring out barges. It owns two barges, both of which were built by the assessee itself after purchase of the requisite raw materials. The Deputy Commissioner of Sales Tax held, upon an application made to him by the assessee under Section 52 of the Bombay Sales Tax Act, 1959, that the assessee was a dealer within the meaning of Section 2 (11 of the Act. The decision of the Deputy Commissioner was set aside by the Sales Tax tribunal, reliance being placed upon the aforementioned judgment in the case of Famous Cine Laboratory and Studio Ltd. Basing itself upon the same judgment, the High court, as aforesaid, declined to call for a reference.;