1975 (9) TMI 147

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..... General Sales Tax Act, 1948 (hereinafter referred to as the Act). This can be answered only after one is able to gather the meaning of that expression as used in this case. The question arises on the following facts: The appellants are a firm of army contractors, registered as a dealer under the Act as also under the Central Sales Tax Act. Under the contract between them and the army authorities, they had to supply, among other things, meat and meat on hoof. Under section 6 read with entry No. 18 of Schedule B to the Act no tax is payable on the sale of meat, fish and eggs except when sold in tins, bottles or cartons. For the year 1965-66, the appellants were assessed on the returns filed by them, and the sale of meat to the army, whether .....

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..... was made on hoofs, for the calculation of value, 50 per cent of the weight of the animal was considered to be dressed meat, and paid for accordingly." In answer to the allegations made in these two paragraphs, the counter-affidavit filed on behalf of the respondents, the Joint Excise and Taxation Com- missioner, Punjab, Patiala, and the State of Punjab, stated that the terms of the contract between the dealer and the army authorities were not relevant and that the goods supplied were taxable. In the High Court, before the single Judge as also the Division Bench, two contentions were raised on behalf of the appellants before us: First, that even assuming "meat on hoof" meant live sheep and goats, no sales tax would still be payable as the .....

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..... ourt, that on a correct reading of the contract between the appellants and the army authorities it would be clear that by meat on hoof what was meant was only the meat content of the animals. This would be clear, it was submitted from the fact that the price paid by the buyer was on the basis of the meat content of the animal, that 50 per cent of the weight of the animal was taken as the amount of dressed meat. It was pointed out that the learned single Judge had noted in his judgment that this position was not disputed. We find it difficult to appreciate the view taken by the learned single Judge which has been affirmed by the Division Bench that "meat on hoof is preserved meat, the preservation being the natural carton consisting of the .....

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