P. N. BHAGWATI, J. M. SHELAT, J.

( 1 ) IN this Reference the petitioners own two units of textile mills in Ahmedabad which were purchased some years ago as going concerns. In recent years the petitioners company embarked upon a programme of modernising its machinery and as part of that programme the company sold old looms carding engines and other machinery during the assessment period 1953-1954. There were in all 16 sales to different purchasers and the total price received by the petitioner company was Rs. 201 808 The petitioner company realised sales tax from the purchasers in respect of 12 sales out of the total 16 sales the sale price whereof was Rs. 58 308 in the aggregate. No sales tax was realised on the remaining 4 sales the sale price whereof aggregated to Rs. 1 43 500 During the assessment proceedings it was contended by the petitioner company that the remaining 4 sales of machinery in respect of which the petitioner company had realised the amount of Rs. 1 43 500 should be excluded from the total turnover and should not be subjected to sales tax. The contentions urged by the petitioner company were rejected by the Sales Tax Officer and an appeal against the Sales Tax Off

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