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Issues: (i) Whether DEPB licence is goods having marketability and is liable to tax under Schedule Entry C-I-26(6) appended to the Bombay Sales Tax Act, 1959. (ii) Whether the assessee was entitled to the benefit of Notification Entry A-94 issued under Section 41 of the Bombay Sales Tax Act, 1959.
Issue (i): Whether DEPB licence is goods having marketability and is liable to tax under Schedule Entry C-I-26(6) appended to the Bombay Sales Tax Act, 1959.
Analysis: The reference on this question was governed by the Supreme Court ruling that a DEPB licence, like an REP licence, has intrinsic value and is a market commodity. On that basis, such licence falls within the ambit of goods for sales tax purposes and its sale is exigible to tax.
Conclusion: The issue was answered in favour of the Revenue and against the assessee.
Issue (ii): Whether the assessee was entitled to the benefit of Notification Entry A-94 issued under Section 41 of the Bombay Sales Tax Act, 1959.
Analysis: The entitlement to exemption depended on fulfilment of the conditions in the notification. The assessee did not produce the necessary documentary evidence to establish compliance with those conditions, and the matter was treated as one of fact rather than a substantial question of law.
Conclusion: The issue was answered against the assessee and in favour of the Revenue.
Final Conclusion: Both referred questions were decided against the assessee, and the tax references stood concluded in favour of the Revenue.
Ratio Decidendi: A DEPB licence constitutes marketable goods liable to sales tax, and exemption under a notification can be denied where the assessee fails to prove fulfilment of the prescribed conditions by documentary evidence.
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