{"id":41812,"date":"1980-03-07T00:00:00","date_gmt":"1980-03-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-sales-tax-vs-uttamchand-durlabhdas-on-7-march-1980"},"modified":"2018-11-07T11:18:45","modified_gmt":"2018-11-07T05:48:45","slug":"commissioner-of-sales-tax-vs-uttamchand-durlabhdas-on-7-march-1980","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-sales-tax-vs-uttamchand-durlabhdas-on-7-march-1980","title":{"rendered":"Commissioner Of Sales Tax vs Uttamchand Durlabhdas on 7 March, 1980"},"content":{"rendered":"<div class=\"docsource_main\">Madhya Pradesh High Court<\/div>\n<div class=\"doc_title\">Commissioner Of Sales Tax vs Uttamchand Durlabhdas on 7 March, 1980<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1984 55 STC 205 MP<\/div>\n<div class=\"doc_author\">Author: G Singh<\/div>\n<div class=\"doc_bench\">Bench: G Singh, B Varma<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> G.P. Singh, C.J.<\/p>\n<p>1. This is a reference made by the Sales Tax Appellate Tribunal referring for our answer the following questions of law :\n<\/p>\n<p>(1) Whether, on the facts and circumstances of the case, the setting aside of the decision to resort to best judgment assessment was proper?\n<\/p>\n<p>(2) Whether or not, on the facts and circumstances of the case, the silver ornaments purchased by the assessee should be treated as bullion and subjected to tax only at 1\/2 per cent and not as silver ornaments for personal wear liable to tax at 1 per cent ?\n<\/p>\n<p>2.    The accounting period with which we are concerned in this reference is from 13th November, 1966, to 2nd November, 1967.   The books of account of the assessee   were  rejected  on   the   ground  that  no separate account of the molten silver was maintained by the assessee.    The Tribunal held  that  this was not a sufficient  ground   for  rejecting the books of account.    The books were properly maintained and no false entries were found in them.    There was no statutory rule making it incumbent on the assessee to maintain separate account of molten silver.    In   these circumstances, in our opinion, the Tribunal reached the correct conclusion that the books of the assessee could not be  rejected and resort could not be taken to the best judgment assessment.\n<\/p>\n<p>3.    The facts found by the Tribunal so far as the second question is concerned are that the  assessee   purchased   broken  ornaments of  silver  which  were not worth   being   used  and  were not purchased for use.    The ornaments  purchased were immediately melted and  the   melted  silver  was  sent  to Bombay for sale. The  Tribunal,   therefore, held that the ornaments purchased did not fall within the description of &#8220;silver ornaments of  personal wear&#8221; under entry 2, Part V of   Schedule   II   to  the   Madhya  Pradesh General  Sales Tax Act, 1958, and the purchases were not liable to be taxed at 1 per cent.    It  was  also held  that the ornaments were purchased as bullion and therefore, tax at the rate of 1\/2 per cent only  could be charged.    In  our opinion, the Tribunal came to the right conclusion on this point also.    Silver ornaments of personal wear falling within entry 2 of  Part V of Schedule II, in our opinion, mean such ornaments   which are meant for use.    In the instant case the ornaments were not sold as ornaments, nor were they purchased  as ornaments.    The  intention   in   purchasing   and  selling  the ornaments was to purchase and sell silver.\n<\/p>\n<p>4.    For the reasons given above, we answer the question as follows:\n<\/p>\n<p>(1)  The Tribunal was right in setting aside the decision to resort to the best judgment assessment.\n<\/p>\n<p>(2)  The Tribunal was right in   treating  the  ornaments  purchased by the assessee as bullion and in subjecting the same to tax at 1\/2 per cent.\n<\/p>\n<p>There will be no order as to costs of this reference.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madhya Pradesh High Court Commissioner Of Sales Tax vs Uttamchand Durlabhdas on 7 March, 1980 Equivalent citations: 1984 55 STC 205 MP Author: G Singh Bench: G Singh, B Varma JUDGMENT G.P. Singh, C.J. 1. This is a reference made by the Sales Tax Appellate Tribunal referring for our answer the following questions of law [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,24],"tags":[],"class_list":["post-41812","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madhya-pradesh-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Of Sales Tax vs Uttamchand Durlabhdas on 7 March, 1980 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/commissioner-of-sales-tax-vs-uttamchand-durlabhdas-on-7-march-1980\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commissioner Of Sales Tax vs Uttamchand Durlabhdas on 7 March, 1980 - Free Judgements of Supreme Court &amp; 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