TaxTMI 
TaxTMI 
2012 (12) TMI 826
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....6 by an order dated 28.03.2006 on the sale of car made by the Petitioner in the F.Y. 2004-05. The respondent asserted that these articles were used in the connection of running the business itself and when the vehicle has ceased to serve the desired purpose, the same were sold, after claiming depreciation. The Petitioner filed two revision petitions, under Section 43(5) of the local Act read with Rule 36(6) of the Delhi Sales Tax Rules 1975 and another under Section 9 (2) of the Central Sales Tax Act 1956 read with abovementioned provisions of the Delhi Sales Tax Act and Rules) under Joint Commissioner, Trade and Taxes (i.e. the second Respondent) on the basis of the abovementioned two orders. The second Respondent issued the impugned order on 16.05.2007 which is alleged by the petitioner The petitioner filed a review application to the Additional Commissioner (Appeals) which again reiterated the demand of tax regarding the sale of a car vide an order dated 07.04.2011. 3. The impugned assessment order argues the petitioner, was passed without paying heed to two previous orders of the Appellate Tribunal i.e. Powertron Products (2001-02) [41 DSTC J-3] (dated 21.05.2002) and reiterat....
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....ourt respectively to come to its order. Firstly, in the State of Tamil Nadu v. Thermo Electrics (1977 39 STC 317 Mad), the Madras High Court held: "...if an assessee is a dealer, with reference to the business carried on by him, every transaction of sale, whether it is of capital asset or a stock-in-trade would be liable to be included in the turnover of the assessee." In State of Tamil Nadu v. Burmah Shell Oil Storage and Distributing Co. of India Ltd and Others (AIR 1973 SC 1045), the Supreme Court held that sale of scrap, periodically unserviceable oil drums, rubber hoses, jerry cans, rims, unserviceable pipe fittings and old furniture etc. are parts of its trading activity and any sale of these unserviceable goods as scrap is a transaction connected with trade/commerce/business of the company and the turnover of this commodity is liable to tax. 6. The definition of "business" is to be found in Section 2 (c) of the Delhi Sales Tax Act, 1975. It reads as follows: (c) "business" includes:- (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or con....
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.... the fact that unserviceable goods are sold and not stored so that badly needed space is available for the business of the assessee also does not lead to inference that business is intended to be carried on in selling those goods. The contention on behalf of the State in respect of the first part of the turnover for 1964-65 therefore fails. With respect to the second part of the turnover the question whether the amendments in 1964 to the definition of "business" and "casual trader" are directly applicable has to be considered. It will be observed that under the definition of "business" even commercial transactions carried on without a motive to make gain or profit, or whether or not any profit accrues from such activity are included in that definition. The amended sub clause (ii) also includes with that definition transaction in connection with or incidental or ancillary to such trade, manufacture or adventure or concern. The question is, whether the word "such" in sub-cl. (ii) of cl. (d) of s. 2 refers to the trade etc. defined in sub-cl. (i). It was contended before the Madras High Court that it is not so and that incidental or ancillary activity must partake the nature of '....
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....d items were taxable at first point i.e. w.e.f. 29.03.1996 to 02.09.2001 therefore accordingly purchases were made after payment of tax. Since the tax had been paid at the time of purchase, the sale of said vehicles cannot be taxed in view of provisions of Section 5 of the Delhi Sales Tax Act 1975 whereunder notification No. F. 4 (67)/95 Fin. (G) (i) dated 29.03.1996 was issued. The said notification was withdrawn on 03.09.2001. Thereafter, sale of cars/vehicles became taxable at last point in notification No. F. 101 (69) 2001 - FIN (A/Cs) 2318-26 dated 03.09.2001 no protection/saving clause was provided/incorporated in respect of cars/vehicles which were purchased under the first point regime and were sold (after use) during the last point regime from levy of tax. 11. Sales tax is an indirect tax. It is leviable on transfer of goods. It is, however, well-settled that while construing a taxing statute one has to look merely at what is clearly said. [See speech of Viscount Simon referred to in State of West Bengal v. Kesoram Industries Ltd. and Ors. [2004]266 ITR 721 (SC), wherein it was noticed: "105. Justice G.P. Singh in Principles of Statutory Interpretation (8th Edn., 2001) w....