TMI Blog1973 (7) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... patients who visited his clinic for treatment amounted to sale within the meaning of the Bihar Sales Tax Act, 1947?" 2.. The facts of the case as stated in the statement are these The assessee is a physician who runs a pharmacy and clinic for examination and treatment of patients who go to him. As a result of a surprise inspection by the Intelligence Branch of the sales tax department on 28th September, 1958, proceedings for assessment of sales tax were commenced by the Assessing Officer on the basis of the result of the examination of books of account seized during the inspection. Assessments were made for the periods 1954-55, 1955-56, 1956-57, 1957-58 and 1-4-58 to 31-7-58. On appeal the assessment for the year 1954-55 was confirmed, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nes to any outsider. 4.. During the course of argument the learned Advocate for the assessee admitted that it was open to a patient not to purchase the medicines from the clinic and to take away the prescription drawn up by the physician by paying the consultation fee. Then, finally, rejecting the argument advanced on behalf of the assessee-applicant, the Tribunal has recorded the following finding: "The transfer of property in the shape of medicine was thus subject to the agreement of both the parties and an implied contract for the sale thus existed. The accepted fact of the case being that the applicant did not use to charge any fees from such of the patients who chose to purchase medicines from him and the assessing authority having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no case was detected where the patient was allowed to purchase the medicines from another shop after charging merely consultation fee. But that does not solve the difficulty of the assessee in this case. Reading the assessment order, the appellate order of the Deputy Commissioner and the case made out by the assessee at various stages, the facts which emerge are these: The assessee used to sit in the clinic, examine patients and prescribe medicines. The charges which were paid by the patients were the charges for the supply of the medicines, namely, the price. The whole of the amount mentioned in the register maintained by the assessee has been taken to be his gross turnover. It is a case where the assessee, as it appears, was not cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of Bihar, where a doctor was sitting in his shop prescribing medicines to his patients, not charging any consultation fee and was charging price of the medicines supplied to them. There is no doubt in my mind that the assessee was selling medicines to his patients who when purchasing medicines from his clinic were his customers. They used to pay prices and thus there was a contract of sale between the seller, namely, the assessee and the customers, namely, the patients. Reading the finding recorded by the Tribunal in the light of what has been said by the Commissioner of Commercial Taxes in his revisional order dated 14th March, 1964, it is clear that the assessee was a dealer within the meaning of section 2(c) of the Act and was effecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Madras High Court in Sundaram Motors (Private) Ltd. v. The State of Madras[1958] 9 S.T.C. 687. The two cases were rightly distinguished by the Tribunal. 8.. Both the questions referred to this court have got to be answered in the affirmative and it has got to be held that the assessee was supplying medicines to his patients as a dealer within the meaning of the Act and on the facts and circumstances of this case, supply of medicines by him to his patients who visited his clinic for treatment amounted to sale. The reference is, therefore, answered against the assessee and in favour of the department. The latter must have its costs. Hearing fee one consolidated sum of Rs. 64 only. JHA, J.-I agree. Reference answered in the af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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