TaxTMI 
TaxTMI 
1962 (12) TMI 29
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....------------------------------- Judgment The Judgment of the Court was delivered by SHAH, J.-Bhopal Sugar Industries Ltd. (the first petitioner) is a public limited company incorporated under the Indian Companies Act, 1913, and the second petitioner is a shareholder and a director of the company. The company is a manufacturer of sugar and owns a fleet of motor trucks and other motor vehicles. The company also carries on the business of selling motor spirit, high speed diesel oil, and lubricants and maintains a petroleum pump at Sehore in the State of Madhya Pradesh. Between April 1, 1959, and March 31, 1960, the company used for its motor vehicles 8,908 gallons of petroleum, 40,719 gallons of high speed diesel ....
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....ludes the consumption by a retail dealer himself or on his behalf of motor spirit or lubricants sold to him for retail sale." (The definition is followed by an explanation which is not material for the purpose of this appeal). Section 3 is the charging section. It provides that subject to the provisions of the Act, there shall be levied on all retail sales of motor spirit and lubricants effected after the commencement of the Act, tax at the rates specified in the table set out the rein. The company is registered under section 4 of the Act as a retail dealer. By section 2(1) consumption by a retail dealer himself or on his own behalf of motor spirit or lubricants sold to him for retail sale is included in the definition of "retail sale ".....
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....ed to be sales." In Gannon Dunkerley & Company's case [1959] S.C.R. 379; 9 S.T.C. 353.,, this Court was called upon to consider whether in a building contract which is one, entire and indivisible, there is sale of goods. It was held by the Court that the Provincial Legislature was not competent under Entry 48, List II, Schedule VII, of the Government of India Act, 1935, to impose tax on the supply of materials used in such a contract treating it as a sale. The decision of the Court did not rest upon any peculiar character of a building contract. It was held on the larger ground canvassed in that case, that the expression "sale of goods" within the meaning of the relevant legislative entry had the same connotation as "sale of goods" in....
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....s in which he deals is therefore not a sale within the meaning of the Sale of Goods Act and therefore it is not "sale of goods" within the meaning of Entry 54, List II, Schedule VII, of the Constitution. The legislative power for levying tax on sale of goods being restricted to enacting legislation for levying tax on transactions which conform to the definition of sale of goods within the meaning of the Sale of Goods Act, 1930, the extended definition which includes consumption by a retail dealer himself of motor spirit or lubricants sold to him for "retail sale" is beyond the competence of the State Legislature. But the clause in the definition in section 2(1) "and includes the consumption by a retail dealer himself or on his behalf of mot....