Case: Commissioner of Sales Tax, Bombay Vs. Amandi Private Limited

The assessee (respondent) carries on the business of hiring out barges. It owns two barges, both of which were built by the assessee itself after purchase of the requisite raw materials. The Deputy Commissioner of Sales Tax held, upon an application made to him by the assessee under section52 of the Bombay Sales Tax Act, 1959, that the assessee was a dealer within the meaning of section2(11) of the Act. The decision of the Deputy Commissioner was set aside by the Sales Tax Tribunal, reliance being placed upon the aforementioned judgment in the case of Famous Cine Laboratory and Studio Ltd. Basing itself upon the same judgment, the High Court, as aforesaid, declined to call for a referenceThe Famous Cine Laboratory and Studio Ltd. owned a film studio and a film laboratory and hired out the studio and equipment to film producers for shooting films. It purchased materials such as bricks, wood, plaster, paint, etc., and utilised them in the maintenance of the studio and in the making of film sets. It was held that in processing the said goods for the said purposes what the assessee was doing was either making additions to its capital assets or providing itself with further capital assets and it was, accordingly, not carrying on the business of buying goods and was not a dealer within the meaning of section 2(11)

Reasoning: Having heard counsel we are of the view that the question aforementioned is a question of law and that it requires consideration in the light of the judgment in D. V. Saves case, which, prima facie, appears to us to be more on point than the judgment in the case of Famous Cine Laboratory and Studio Ltd.