| Case ID |
41259691-40be-4464-9ae7-ba7ad49d3265 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No. 1185 of 1979 |
| Decision Date |
Dec 15, 1981 |
| Hearing Date |
|
| Decision |
The Supreme Court dismissed the appeals of Hindustan Brown Boveri Ltd. and Hindustan Engineering Co. Ltd., affirming the decision of the Gujarat High Court. The court found that both companies were liable for purchase tax under section 16 of the Gujarat Sales Tax Act for violating the terms of Form No. 19, which required that the raw materials purchased would be used for manufacturing taxable goods sold within the state. The court clarified that despite the exemptions provided under section 49(2) for sales to electrical undertakings, the goods sold did not cease to be taxable goods under the Act. The court concluded that the appellants had contravened their declarations by selling goods that were not considered taxable under the Act, thereby affirming the tax liabilities imposed by the Sales Tax authorities. |
| Summary |
In the case of Hindustan Brown Boveri Ltd. and Hindustan Engineering Co. Ltd. vs. State of Gujarat, the Supreme Court of India addressed significant issues related to the Gujarat Sales Tax Act, 1969. The appellants, two manufacturing companies, were subjected to purchase tax for allegedly violating the terms of their purchase certificates. The court examined the definition of 'taxable goods' and the implications of exemptions under section 49 of the Act. The judgment emphasized the importance of adhering to the declarations made under Form No. 19, which specified the intended use of purchased raw materials. Despite the appeals' arguments that their manufactured goods qualified as taxable, the court upheld the tax authority's decisions, highlighting the complexities of tax law and the necessity for compliance. This case serves as a crucial reference for understanding sales tax liabilities and the interpretation of taxable goods under the Gujarat Sales Tax Act. |
| Court |
Supreme Court of India
|
| Entities Involved |
HINDUSTAN BROWN BOVERI LTD.,
Hindustan Engineering Co. Ltd.,
STATE OF GUJARAT
|
| Judges |
VENKATARAMIAH, E.S. (J)
|
| Lawyers |
K H. Kaji,
T. Sridharan,
R.D. Pathak,
Miss C. K. Sucharita,
Mrs. S. Bhandare,
S.T. Desai,
M.N. Shroff
|
| Petitioners |
HINDUSTAN BROWN BOVERI LTD.,
Hindustan Engineering Co. Ltd.
|
| Respondents |
STATE OF GUJARAT
|
| Citations |
1981 SLD 2017,
1981 AIR 1055,
1981 SCR 435
|
| Other Citations |
M/s. Nawroji N. Vakil Co. v. State of Gujarat
|
| Laws Involved |
Gujarat Sales Tax Act, 1969
|
| Sections |
2(10),
32,
6,
16,
49(2)
|