2008 (12) TMI 700

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....is valid, since the enhancement in the rate of tax from 10 per cent to 25 per cent came into operation with effect from February 1, 1979 in view of the letter and instructions Memo. No. Ft. -37-4/73/iv dated May 21, 1980? (2) Whether the sale of the forest by auction is complete at the fall of hammer or at the time of receiving royalty in instalments as part payment of consideration and the liability of sales tax accordingly? (3) Whether interest is chargeable on the said payment if made in instalment and tax accordingly deposited?" Factual background in which the reference has been made may be stated. On October 6, 1978, Divisional Forest Officer, Nahan, put to auction 40 lots of standing timber trees, in accordance with the terms....

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....peals), Himachal Pradesh, contending that the sale was complete prior to February 1, 1979 and, therefore, tax was to be levied at the rate prevalent prior to that date, but his plea did not find favour with any of the authorities. His revision was dismissed by the Financial Commissioner, who at that time was the highest authority in taxation matters, vide order dated July 29, 1998. Divisional Forest Officer approached the Financial Commissioner to make a reference to this court, under section 33 of the Himachal Pradesh General Sales Tax Act, 1968, and submitted an application stating his case therein. In the meanwhile, the authority of Financial Commissioner (Appeals), in taxation matters, was substituted by Himachal Pradesh Sales Tax Tribu....

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....press agreement or by the course of dealing between the parties, or by usage, if the usage is such as to bind both parties to the contract. In the present case, as already noticed, there was a condition in the auction notice that the bid was to remain open for 30 days. That means this condition varied the provision of section 64(2) of the Sale of Goods Act, inasmuch as it deferred the completion of sale by a period of 30 days from after the date of the auction (the fall of hammer). In this view of the matter, we find support from a judgment of the three-judge Bench of the honourable Supreme Court in Consolidated Coffee Ltd. v. Coffee Board, Bangalore [1980] 46 STC 164; AIR 1980 SC 1468 and a Division Bench judgment of the Madhya Pradesh ....