1979 TAX. L. R. 1620 ::(1979) 11 Lawyer 65 (1) ::43 S T C 52 ::ILR (1978) 2 Delhi 273

Delhi High Court

Hon'ble Judge(s): T V R Tatachari , C.J. AND S. Ranganathan , J

Bengal Finance (Sales Tax) Act (6 of 1941) , S.2(g)— 'Sale' - Assessee dealer in cars, spare parts and accessories - Assessee under warranty bound to replace parts to consumers if found defective during the warranty period - Such supply of parts whether assessable to tax. (Sale of Goods Act (1930) , S.12(1)— The respondent is registered as a dealer under the Sale Tax Act and carries OH business of sale of motor cars, their spare parts and their accessories. For the period of assessment 1964-65, the dealer was assessed to sales tax by an order under S. 11 (1) of the Sales Tax Act. During the aforesaid period of assessment, the dealer purchased spare parts of motor vehicles locally on the strength of the registration certificate free of sales tax under the Sales Tax Act. It also purchased spare parts of motor vehicles at concessional rate of tax furnishing Form 'C' prescribed under S. 8 of the Central Sales Tax Act, 1956, to the selling dealers in other States in the course of Inter-State Trade or Commerce. The dealer transferred the said spare parts to its Service Department, where they were used for replacement purposes in the motor-cars sold under a 'warranty'. It was pointed by the respondent that there was warranty given by the manufacturer to the respondent who was the first purchaser from the manufacturing company and, again there was a w....