CST & VAT: Maharashtra VAT - Where assessee, a manufacturer of motor vehicles, sold a chassis to its dealer and later it purchased said chassis from dealer and thereafter it sold chassis on hire purchase basis to a customer, Tribunal was justified in disallowing re-sale claim of assessee on ground that it held trade mark in respect of chassis sold to customer and further amount of hire purchase premium would form part of sale price
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[2015] 55 taxmann.com 400 (Bombay)
HIGH COURT OF BOMBAY
Tata Engineering And Locomotive Co. Ltd.
v.
State of Maharashtra*
S.C. DHARMADHIKARI AND A.A. SAYED, JJ.
SALES TAX REFERENCE NOS. 16 OF 2003 & 3 OF 2008†
JANUARY 30, 2015
Section 8, read with sections 2(26) and 2(29), of the Bombay Sales Tax Act, 1959 - Levy of tax - Deduction from turnover in respect of re-sale of goods - Assessment years 1994-95 and 1995-96 - Assessee, a manufacturer of motor vehicles, sold a chassis to its dealer - Later it purchased said chassis from dealer for a total purchase price of Rs. 5 lakhs - Thereafter it sold chassis on hire purchase basis to a customer 'A' - As per hire purchase agreement entered into by assessee with 'A', assessee was to receive an amount of Rs. 8 lakhs from hirer 'A' - This consisted of price of chassis, hire purchase premium, insurance premium and auction money - Assessee claimed that it was entitled to re-sale exemption under section 8 read with section 2(26) with regard to sale of chassis made on hire purchase basis - It also stated that hire purchase premium did not form part of sale price of chassis and, therefore, sale price of Rs. 5 lakhs should be taken as sale price - Whether in peculiar facts of case assessee held trade mark in respect of chassis sold to customer on hire purchase basis - Held, yes - Whether, therefore, Tribunal was legally justified in disallowing re-sale claim of assessee under section 8 with regard to sale of chassis made on hire purchase basis - Held, yes - Whether amount of hire purchase premium in question would form part of sale price as defined in section 2(29) - Held, yes [Paras 41 and 46][In favour of revenue]
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[2015] 55 taxmann.com 400 (Bombay)
HIGH COURT OF BOMBAY
Tata Engineering And Locomotive Co. Ltd.
v.
State of Maharashtra*
S.C. DHARMADHIKARI AND A.A. SAYED, JJ.
SALES TAX REFERENCE NOS. 16 OF 2003 & 3 OF 2008†
JANUARY 30, 2015
Section 8, read with sections 2(26) and 2(29), of the Bombay Sales Tax Act, 1959 - Levy of tax - Deduction from turnover in respect of re-sale of goods - Assessment years 1994-95 and 1995-96 - Assessee, a manufacturer of motor vehicles, sold a chassis to its dealer - Later it purchased said chassis from dealer for a total purchase price of Rs. 5 lakhs - Thereafter it sold chassis on hire purchase basis to a customer 'A' - As per hire purchase agreement entered into by assessee with 'A', assessee was to receive an amount of Rs. 8 lakhs from hirer 'A' - This consisted of price of chassis, hire purchase premium, insurance premium and auction money - Assessee claimed that it was entitled to re-sale exemption under section 8 read with section 2(26) with regard to sale of chassis made on hire purchase basis - It also stated that hire purchase premium did not form part of sale price of chassis and, therefore, sale price of Rs. 5 lakhs should be taken as sale price - Whether in peculiar facts of case assessee held trade mark in respect of chassis sold to customer on hire purchase basis - Held, yes - Whether, therefore, Tribunal was legally justified in disallowing re-sale claim of assessee under section 8 with regard to sale of chassis made on hire purchase basis - Held, yes - Whether amount of hire purchase premium in question would form part of sale price as defined in section 2(29) - Held, yes [Paras 41 and 46][In favour of revenue]
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