TaxTMI 
TaxTMI 
2017 (9) TMI 593
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....r's services are no different from that of the Delhi Transport Corporation ('DTC') and hence it is not liable to pay sales tax. The Respondent relies upon several judgments of various High Courts and the Supreme Court, passed in relation to the Railways to argue that the Petitioner is liable to pay sales tax on the sales effected by it. 3. Initially the Petitioner had challenged the assessment made for Assessment Year ('AY') 1994-95 which resulted in ST. Ref. 4/2004. Thereafter the Petitioner challenged the assessments made for AYs 1995-96, 1996-97 and 1997-98 which resulted in ST. Ref. 1/2015, ST.Ref. 2/2015 and ST. Ref. 3/2015. Brief Facts 4. The Petitioner is engaged in the services of civil aviation including the running of aircraft, ferrying of passengers and goods through air routes in both the domestic and international sectors. Till 1974, the Petitioner was registered with the Sales Tax Authorities as a dealer only in respect of its catering business and thereafter, only in relation to providing canteen facilities to its staff. The Respondents sought to re-assess the Petitioner's returns on account of sales made by it in respect of unserviceable (rejected) air ....
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....he case, the Tribunal was right in holding that the activity of the Indian Airlines Limited is 'commerce' covered under the definition of 'business' in clause (i) of Section 2(c) of the Delhi Sales Tax Act, 1975? (2) If the answer to question No.1 is in the affirmative, whether in the facts and under the circumstances of the case, the Tribunal was right in holding that the transactions of sale of scrap, spare parts, other material and old aircrafts are "business" falling under clause (ii) of Section 2(c) of the Act being incidental or ancillary to or in connection with the business? (3) Whether in the facts and under the circumstances of the case, the Tribunal was correct in holding that the Indian Airlines, being a company, was not entitled to be declared 'non-business' as distinguished from the Delhi Transport Corporation and the Andhra Pradesh Road Transport Corporation? (4) Whether in the facts and under the circumstances of the case when the dealer did not impart the information to his assessing Authority, the Tribunal was right in law in holding that the knowledge and information with the other assessing authorities or the Enforcement Wing could not be imputed to the....
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....e agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who sells goods belonging to any principal whether disclosed or not; and (iv) an auctioner who sells or auctions goods belonging to any principal, whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal." Petitioner's Submissions 13. Mr. Mukul Gupta, learned Senior Counsel appearing for the Petitioner, relies heavily on the judgment of this Court in DTC (supra) to submit that the activity of the Petitioner is no different from that of the DTC. Mr. Gupta submits that the word "such" as appearing in Section 2 (c) (ii) of the DST Act takes colour from the main activity referred to in Section 2 (c) (i) of the Act and cannot be alienated therefrom. 14. According to Mr. Gupta, the Petitioner is not a dealer as per the provisions of the DST Act inasmuch as, the business for which the Petitioner is registered is not in any manner connected with the sale of old aircraft and scrap. Moreover, the predominant activity in terms of the test as laid down in the DTC (supra), being civil aviation, t....
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....s of the present case and hence no sales tax would be payable by the Petitioner. Respondent's Submissions 18. On the other hand, Mr. Sanjoy Ghose, learned Additional Standing Counsel appearing for the Respondents, submits that the present case is clearly distinguishable from the case of DTC (supra) inasmuch as DTC is a statutory corporation which is statutorily barred from selling spare parts, equipments or accessories. He relies upon Section 19(3) of the Road Transport Corporation Act, 1950. He further relies upon judgments of various Courts passed in respect of Railways to argue that the activities of Air India are akin to the business carried out by Railways. He specifically relies upon - * The District Collector of Stores, Northern Railway, Jodhpur vs. Assistant Commercial Taxation Officer AIR 1976 SC 489, * Controller of Stores Central Railway vs. Commissioner of Sales Tax Maharashtra State, Bombay, [1995] 99 STC 222 (Bom), * Member Board of Revenue West Bengal vs. Controller of Stores, Eastern Railway, Calcutta AIR 1989 SC 1468, 19. Mr Ghose also referred to the decision in M.P. State Road Transport Corporation vs. Commissioner of Sales Tax, 1995 MPLJ 696 (h....