KATHIAWAR MOTORS Vs. V T SHAH SALES TAX OFFICER NO 2 DIVISION 1 RAJKOT
LAWS(GJH)-1988-3-21
HIGH COURT OF GUJARAT
Decided on March 25,1988

KATHIAWAR MOTORS,(M/S.) Kathiawar Motors, Rajkot Appellant
VERSUS
V T Shah Sales Tax Officer No 2 Division 1 Rajkot,V. T. Shah And Others Respondents

JUDGEMENT

P.R.GOKULAKRISHNAN - (1.)This petition is a vivid illustration of an easily avoidable litigation. Has not the Department adopted a course which is basically unsupportable ? Has not an honest assessee been driven to file the present petition? Would not a proper approach in the matter by the Department have saved time and money of all concerned ? These are some of the questions that need to be examined in the above petition.
(2.)The basis of the petition is three show cause notices all dated 25/02/1970 The petitioner is a partnership firm carrying on business of sale inter alia of trucks and chassis mostly on hire-purchase basis at Rajkot. The petitioner is a registered dealer under the Bombay Sales Tax Act 1959 being registered for selling cars trucks motorcycles spare parts etc. During the period from 1/01/1960 to 31/12/1962 the petitioner had entered into agreement with various parties on hire purchase systems in respect of truck chassis. Under this hire-purchase system the party usually agreed to pay the amount by certain instalments every month the period ranging between 7 months to 24 months depending on each individual case. As per this agreement the hirers i.e. the parties would become the owners of the truck on the exercise of the option to purchase after the payment of the last instalment. ... ... ... ...
(3.)It is the case of the petitioner that instead of finalising the assessment and taking the sales tax paid into consideration the first respondent issued three notices all dated 25/02/1970 under Sec. 37 of the Bombay Sales Tax Act 1959 stating that the petitioner had collected the following amounts by way of sales tax in violation of Sec. 46 and therefore the petitioner should show cause as to why the said amounts should not be forfeited and why penalty should not be levied under Sec. 37(2) of the Sales Tax Act.
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