Sales tax on company-owned second-hand car upheld after long use and treatment as a business asset

Sale of a motor car treated as a company asset and later sold as a second-hand vehicle was held liable to sales tax. The car was purchased for the managing director's use, shown in the company books as an asset, and sold after several years of use, so the transaction was not an isolated sale of private property or a sale in its original condition. Arguments based on authorities concerning private assets and transport operators' bus sales were distinguished. The objection based on double taxation was rejected because the later transaction involved a used car, and the sale was taxable.

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Issues: Whether the sale of a motor car, acquired and used as a company asset and later sold as a second-hand car, was liable to sales tax.

Analysis: The car was purchased for the use of the managing director, its cost and sale proceeds were reflected in the company books, it was shown as an asset of the company, and it was sold after being used for several years. The attempted reliance on authorities dealing with private property or isolated sales of buses by transport operators was distinguished. The objection based on double taxation was rejected because the later sale was of a second-hand car and not a sale in its original condition.

Conclusion: The sale was taxable and the application was dismissed against the applicants.

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