LexBHOPAL SUGAR. INDUSTRIES LTD., MADHYA PRADESH versus D. P. DUBE, SALES TAX OFFICER, BHOPAL REGION, BHOPAL
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. , . . \~·: ! '--: :~ . )962 -· 1 D1tnn/J.r, -, I. - ,-_ - . \'. . I _ -----;-----------------------------~ 488 < ·;-..._., . \ : ' SUPREME COURT REPOR.'TS[l.964] VOL. . " . , "--· . I . " - BHOPAL SUGAR. INDUSTRIES-'LTD.,. l\1ADHYA PRADESH ' . .. D. P. DUBE, SALES TAX OFFICER,. . BHOJ:'AL REGION, BHOPAL • (B;'P. 'SINHA; c. 1., P. B. GAJENDRAGADKAR; / . K.·_N._'\VANCHOO, K. c. 'DAS GUPTA !. · and 1· C. SHAH,_ 11:). Salu Tax-Nature of transaction-High Court'• Jurisdic- tion to'go into-Constitution of ludia, Ari. 226~. · · \ ' ' .. • • . • " , _-· - ~ • ' •• ' . : J . ·. \ ·~ The appellant, a manufacturer ofsuga~ and· a dealer in petroleum producis, was assessed to sales ta£-in- respect. of the ·consumption by it for its 'own motor vehicles ,of. "the petroleum · 1 products in which it dealt. ·. The appellant , challenged , the assessmen£ in respect of the consumption by it·· by way· of a 'petition under Art. 226 of the Constitution before the High Court of Madhya Pradesh on the grounds that its own consump- tion did not amount to a sale under the relevant provisions of · the Madhya Bharat Sales of Motor Spirit Taxation. Act, 1953, , and that if such a transaction was held to be taxable _'under, the . provisioiis of the Act the provi_sions were_ unconstitutional ·and . beyond the legislative competence of the State and therefore ·..:._the· _assessment v.·ould be an· infringement of the rights of the · .·petitioner under Art. 19 (IJ (f) and (g) of the Constitution. : . The High Court called for the agreement between tbe appellant company and Caltex (India) Limited and by construing the agrCement came to the conclusion· that the appella'nt was nOt the ·owner of the petrol and rejected _the petition though no point was taken by the Sales Tax· Officer .before it. that the appcllantwasnotthe'owner. · : .. :· -···:-; ·~ .: _;:" -· ,,:_ , : .. - .. · . .,, \ Held, that the investigation of the- nature . of the trans,~ 'action was not a matter for the High Cou1t but one for determi·. nation by_the taxing authorities and that the _High _Court. was in error in having itself determined the nature of the . trans- ' . . . - . . -. . . . action. The order passed by the High Oourt~ cannot ·therefore,_ be upheld. · , ::;; ', · '-· _ .. I· , . . --- --- .---; . . CIVIL APPELLATElURISDICTION: Civii Appeal No. 578 of 1962. • 1 s.c.R. SUPREME COURT REPORTS 489 Appeal by special leave from the judgment and order dated January 2;3, 1!)61, of the Madhya Pradesh High Court in Misc. Petition No. 223 of 1960. S. T. Desai, .J. lJ. Dad.whanji, 0. C. .l!a.thui· and Ravinder Narain, for the appellant. B. Sen, [(. L. llathi and J. X. Shtojf, for the respondent. 1962. December 21. The Judgment of the Court was delivered by SHAH, ].-This is an appeal against the judg- ment of the Madhya Pradesh High Court dismissmg a petition filed by the Bhopal Sugar Industries Ltd. - hereinafter called 'the Company'-for a writ under Art. 226 of the Constitution quashing the order of the Sales Tax Officer dated May l, 1960, which imposed liability· upon the Companv for payment of sales-tax under the Madhya Bharat Sales of Motor Spirit Taxation Act, 20 of 1953 in respect of motor spirit and lubricants used for its own vehicles. The Company carries on· the business of manu- facturing sugar, and maintains for the purpose of that business a fleet of motor trucks and other motor- vehicles. The Companv is also registered under the Act as a retail dealer of motor spirit and lubricants. During the period April 1, l95i, and March 31, 1958, the Company consumed a part of its stock-in- trade of motor spirits· and lubricants for its own vehicles. The Sales Tax Officer, Bhopal Region, by order dated May l, 1960, assessed the Company to pay tax in respect of motor spirits and lubricants consumed for its vehicles. The Company then filed a petition in the High Court of Madhya Pradesh at Jabalpur under Art. 226 of the Constitution for a 1962 Bhopal Sr1car lndustrils Ltd. •• D11tt, Salt.1 TDx Offit11 Shoh, J. 1962 Blt&f>a/ Su:"' 1~11tU1 Ltd. • Dt,6,, S.Jts Tax Offi"' Shd, J. 490 SUPREME COURT REPORTS ll964] VOL. writ in the nature of certiorari quashing the order dated May 1, 1960, passed by the Sales Ta11: Officer and the notice of demand issued in pursuance thereof, and for a writ of prohibition or uwndamu.s restraining the Sale
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