ASSISTANT COMMERCIAL TAXES OFFICER ANTI-EVASION I JAIPUR Vs. NATIONAL MOTORS

JUDGEMENT

(1.) THIS is a revision under section 15 of the Rajasthan Sales Tax Act, 1954 read with section 13 (10) of the Rajasthan Sales Tax (Amendment) Act, 1984. Earlier there was a reference to this Court by the Board of Revenue for Rajasthan (hereinafter referred to as "the Board of Revenue") whereby the following two questions of law were referred for consideration of this Court : " (1) Whether, on the facts and in the circumstances of the case, the 'aluminium pipes' are taxable at 10 per cent vide entry No. 41 of the Notification No. F. 5 (16)FD (CT)/69-2 dated 8th March, 1969 or at the general rate of 7 per cent vide residuary entry No. 79 of the said notification ? (2) Whether the Revenue is entitled to split the sale consideration of sprinkler into that of sprinkler and aluminium pipes ?"

(2.) THE facts, briefly stated are as under : THE assessee, M/s. National Motors, Jaipur, is a dealer in agricultural implements including sprinklers used for irrigation and aluminium pipes and is carrying on business at Jaipur. In respect of the assessment of sales tax for the year 1970-71, the Assistant Commercial Taxes Officer, Anti-Evasion, Jaipur, acting as the assessing authority, found that the assessee had included sales of sprinklers worth Rs. 1,54,520 in his account in the category of goods taxable at 7 per cent. According to the Assistant Commercial Taxes Officer, the above sale figure included sales of aluminium pipes also and tax at 10 per cent was leviable on all types of pipes and pipe fittings in view of entry No. 41 of the Notification No. F. 5 (16)FD (CT)/69-2 dated 8th March, 1969. THE Assistant Commercial Taxes Officer, therefore, taxed the sales of aluminium pipes worth Rs. 77,260 at 10 per cent. THE Deputy Commissioner (Appeals-I), Commercial Taxes, Jaipur, affirmed the said order of the Assistant Commercial Taxes Officer and rejected the appeal of the assessee. On revision, the Board of Revenue by its order dated 29th July, 1974, held that the sales of aluminium pipes estimated at Rs. 77,260 would be taxable at 7 per cent only and not at 10 per cent. THEreafter the Assistant Commercial Taxes Officer, Anti-Evasion, submitted an application before the Board of Revenue for making a reference to this Court under section 15 (1) of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act") and by order dated 28th April, 1980 the Board of Revenue referred two questions mentioned above for the opinion of this Court.

(3.) QUESTION No. (1) must, therefore, be decided against the Revenue and in favour of the assessee. In view of the decision on question No. (1), question No. (2) does not arise for consideration because even if the sale consideration for sprinkler is split up into the sprinkler and aluminium pipes it would not make any difference because the rate of tax for both is the same, namely, 7 per cent, under the residuary entry. In the circumstances, the revision is dismissed but without any order as to costs. Petition dismissed. .