9911796707
TMI Blog1951 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, 1948, the petitioner agreed to supply some hessian cloth to the Government of India. The contract provided inter alia that the prices shown in the contract were exclusive of the Bengal sales tax and the Government of India would arrange direct payment of sales tax to the Government of West Bengal if it is found ultimately that sales tax is payable in respect of the said contract. Pursuant to the said contract, the petitioner supplied goods to the Government of India and charged the Government of India the prices payable in respect of such supplies which were exclusive of the sales tax. The petitioner also entered into two other similar contracts with the Government of India for sale of hessian goods and supplied goods under the said co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto existence in September, 1939. Before the 7th January, 1946, the said Department of Supply was charged with the procurement of stores from all places in India includ- ing Bengal, but by a Notification dated 31st December, 1945, the Governor-General in Council was pleased to announce the creation with effect from 7th January, 1946, of the Department of Industries and Supplies in place of the existing Departments of Supply and of Industries and Civil Supply. A copy of this Notification is annexed to the said affidavit, and it appears from such Notification that this newly created department was charged with the work of procurement of stores for Government and with certain additional works. It further appears from Annexure 'B' to that affid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the exemption section and by means of a simple merger of the functions of these departments with the newly designated depart- ment, the petitioner can be deprived of the benefit of the exemption claimed. As I have pointed out before, although the notification in question created this new department and conferred on this new department these functions which were being performed by the Indian Stores Department and the Department of Supply, there was no amend- ment effected in sub-clause (iii) of clause 5(2). I am of the view, therefore, that the petitioner is not liable to pay sales tax in respect of the supplies in question. In the circumstances this Rule must be made absolute, the Noti- fication dated 8th November, 1950, is cancelled and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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