TMI Blog2006 (12) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... t, effected during the course of the opponent company's business and, therefore, the sale of proceeds were not liable to attract any tax under the Gujarat Sales Tax Act, 1969? (2) On the facts and in the circumstances of the case, whether the Tribunal is not right in holding that as the entire sale has been effected on the basis of lump sum consideration for transferring the concern, and not only right, title and interest are transferred, but even the debts and liabilities have also been sold and as stock-in-trade together with other movables got to be transferred to the purchaser, Shri Keshariya Investment Limited, such a transfer cannot be treated as a sale of goods during the course of business of the opponentcompany? (3) On th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acilities which were availed of by the mills company whereas the fourth schedule related to the immovable properties including the immovable machineries transferred by the mills company to the purchaser. On return being filed, the assessment for the period from April 1, 1973 to March 31, 1974, relating to the mills company was taken up by the Sales Tax Officer, Baroda. By an order dated March 18, 1978 the Sales Tax Officer calculated the gross sales of the mills company at Rs. 1,80,23,823. From the above mentioned sum, the Sales Tax Officer deducted the sales of cloth amounting to Rs. 1,57,33,452 and held that the net taxable turnover of sales of the mills company was Rs. 20,90,371. It may be mentioned that this amount was the sale price of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the appellate jurisdiction of the Tribunal. The Tribunal considered different terms of the sale-deed and after hearing the learned counsel for the parties, held that the mills company was not a dealer qua sale of the entire business occasioned as a result of discontinuance of business and that sale of the entire mills company to Shree Keshariya Investment Limited did not amount to sale of goods as defined in section 2(12) of the Act, effected during the course of the business. In view of this finding, the Tribunal held that the sale proceeds realised by the mills company were not liable to tax. Thereupon, the Revenue invoked the provisions of section 69 of the Act and as mentioned above, the Tribunal has referred the four questions for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .S. Shah, learned Government Pleader with Ms. Krina P. Calla, learned Assistant Government Pleader, for the Revenue and Mr. J.S. Joshi, learned counsel for the opponent-mills company, at length and in great detail. From the questions referred to this court for decision, it is evident that what is required to be considered by the court is whether the judgment of the Tribunal holding that the sales or transfer of the opponent, i.e. M/s. Sayaji Mills Limited, after the business was closed down, was not in the course of business and so not taxable is correct. Looking to the scheme of the Act, it becomes very clear that the transfer of the goods after the business of the mills company had been closed down would not be the sale of the articles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication in the name of the assessee under section 62 of the Act for determination of the following question: Whether the sale of Rs. 2.94 crores of plant and machinery, constituting our Spinning Mill at Ranjit Sugar Road, Jamnagar in terms of our agreement dated November 5, 1980 with the Bombay Dyeing Mfg. Co. Ltd. attracts any tax? The Deputy Commissioner of Sales Tax, who heard the application, held that it being a sale of movable property, made not after but with a view to close the business of running the spinning mill, was a business sale and thus liable to tax. The assessee filed an appeal before the Gujarat Sales Tax Tribunal but failed. In reference, the High Court negatived the contention of the assessee that sale was ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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