HINDUSTAN PETROLEUM CORPORATION LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) This is a reference under section 9(2) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the said Act"), read with section 34 of the Bombay Sales Tax Act, 1953, made at the instance of the assessees. The question, which has been referred to us for our determination, is as follows :

(2.) The fact giving rise to this question are as follows :

(3.) The assessees have been carrying on business in the State of Maharashtra and in the former State of Bombay in petrol and petroleum products. In respect of the period from 1st July, 1957, to 31st March, 1958, the Sales Tax Officer assessing the assessees determined the turnover representing the inter-State sales of motor spirit by the assessees at Rs. 9,39,342 and taxed this turnover at the appropriate rates on the footing that the exemption granted under the proviso to section 8(1) of the said Act did not apply to the facts of the case. The amount levied as the Central sales tax on this turnover came to Rs. 61,542. Being aggrieved by this decision, the assessees approached the Assistant Commissioner of Sales Tax in appeal and thereafter the Deputy Commissioner of Sales Tax in revision, but failed to get any relief. The assessees then filed a revision application before the Sales Tax Tribunal, which was also rejected by the Tribunal. The Tribunal took the view that the definition of the expression "sales tax law" in section 2(i) of the said Act was wide enough to include the Bombay Sales of Motor Spirit Taxation Act, 1946, and overruled the submission of the assessees that they were entitled to exemption under the aforesaid proviso on the ground that the sales of motor spirit were exempted from tax under the Bombay Sales Tax Act, 1953. The assessees have now approached this court by way of this reference.