https://www.taxtmi.com/caselaws?id=57893 Purchase tax under section 13 of the Bombay Sales Tax Act, 1959 was held not to apply to machinery bought as a capital asset for use in manufacturing goods. The purchase was not treated as a business purchase by a dealer because the machinery was neither bought for resale nor with an independent profit-making nexus in the purchase transaction itself. The fact that the machinery was used in production for sale did not, by itself, make the acquisition taxable. The earlier Tribunal view was also found inapplicable to the period before the 1 July 1965 amendment, so the machinery purchase remained outside purchase tax. en-us Tue, 24 Feb 1976 00:00:00 +0530 Wed, 15 Dec 2010 12:24:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57893 Purchase tax under section 13 of the Bombay Sales Tax Act, 1959 was held not to apply to machinery bought as a capital asset for use in manufacturing goods. The purchase was not treated as a business purchase by a dealer because the machinery was neither bought for resale nor with an independent profit-making nexus in the purchase transaction itself. The fact that the machinery was used in production for sale did not, by itself, make the acquisition taxable. The earlier Tribunal view was also found inapplicable to the period before the 1 July 1965 amendment, so the machinery purchase remained outside purchase tax. Case-Laws VAT and Sales Tax Tue, 24 Feb 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57893