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S.L. Saraf, J.
TRIPURA BUS SYNDICATE
Versus
STATE OF TRIPURA AND OTHERS.
Civil Rule No. 144 of 1990
Decided On: Decided On : 08-07-1996
TRIPURA SALES TAX ACT - SECTION 3 - TRANSFER OF RIGHT TO USE GOODS - REQUISITION OF VEHICLES FOR ELECTION PURPOSES - NO TRANSFER OF RIGHT TO USE - HIRING CHARGES NOT SUBJECT TO SALES TAX.
Fact of the Case:
During the 1989 Parliament election, the Election Commission requisitioned vehicles from various operators, including the petitioner, for election-related purposes. The vehicles were hired at a rate fixed by the Chief Electoral Officer. After the election, the operators were paid the hiring charges, but the authorities deducted 4% sales tax from the payments, claiming that it was payable under the Tripura Sales Tax Act, 1976 and the Tripura Sales Tax Rules, 1989.
Finding of the Court:
The court held that the requisition of vehicles for election purposes did not amount to a transfer of the right to use the vehicles to the Election Commission. The operators remained in control of the vehicles through their drivers, and they provided the fuel for running the vehicles. The court found that the transaction was a pure and simple hiring arrangement, and that the provisions of the Tripura Sales Tax Act and Rules did not apply.
Issues: Whether the requisition of vehicles for election purposes amounted to a transfer of the right to use the vehicles to the Election Commission, making the hiring charges subject to sales tax under the Tripura Sales Tax Act, 1976 and the Tripura Sales Tax Rules, 1989.
Ratio Decidendi: The court held that the requisition of vehicles for election purposes did not amount to a transfer of the right to use the vehicles to the Election Commission. The operators remained in control of the vehicles through their drivers, and they provided the fuel for running the vehicles. The court found that the transaction was a pure and simple hiring arrangement, and that the provisions of the Tripura Sales Tax Act and Rules did not apply.
Final Decision: The court allowed the writ petition and directed the authorities to pay the balance dues to the operators, along with interest at the rate of 18% per annum from the date the amount was withheld.
S. L. SARAF, J. - This writ petition is filed by Tripura Bus Syndicate, a body registered under the Trade Union Act having its registered office at Agartala, through its General Secretary.
2. Petitioner by this petition is challenging the order passed by the respondent No. 1 under sanction Memo No. 1764-63/F.4(8)/DM/W/ACCTS/89-90, dated February 20, 1990 and Memo No. 1764/67/F.4(8)DM/W/ACCTS/89-90, dated February 20, 1990, being annexures 4 and 5 to the said writ petition. The petition discloses that during Parliament election of 1989 a large number of vehicles were requisitioned by the respondent No. 2 in exercise of the power conferred upon him under section 160(1)(b) of the Representation of the People Act, 1951 vide Notification No. F.14(2)GA/77, dated November 30, 1989, issued by the respondent No. 1. Pursuant to such requisition orders a large number of vehicles of different categories belonging to different operators were produced before the District Magistrate and Collector, South Tripura, with the driver in the running condition. The respondent No. 2, issued instruction to the driver of the vehicle and asked them to take delivery of the Log Book for the purpose of noting down the mileage of the vehicle. According to the petitioner the rate on account of hiring of the said vehicles were fixed by a letter dated November, 8, 1989, issued by the Chief Electoral Officer. The said letter November, 8, 1989, reads as follows :
"GOVERNMENT OF TRIPURA
OFFICE OF THE CHIEF ELECTORAL OFFICER
No. F.3(42) - CEO/89(LOOSE)/75-53 Dated, Agartala, the 8th November, 1989.
Sub : Fixation of rates of hiring charges of different kinds of private vehicles in connection with Lok Sabha Bye Election, 1989.
The Government of Tripura has fixed the rates of hiring charges of different kinds of private vehicles to be used for the ensuing Lok Sabha Bye election, 1989 is noted against each.
Type of vehicle Rate fixed
1. Jeep Rs. 3.75 per k.m. plus detention charges of
Rs. 295 for every 24 hours of proportionate
payment for part thereof.
2. Ambassador/Taxi Rs. 3.75 per k.m. plus detention charge of
Rs. 265 for every 24 hours or proportionate
payment for part thereof.
3. Trailer Rs. 80 for every 24 hours of proportionate
payment for part thereof.
4. Bus Rs. 6.40 per k.m. or Rs. 900 per day or
part thereof which is higher. Night halt
for bus would be Rs. 295.
5. Mini bus/Matadoor Rs. 4.00 per k.m., plus detention charge of
Rs. 350 per 24 hours of proportionate
payment for part thereof.
6. Trucks Rs. 5 per k.m. of running without any
ceiling limit plus a detention charge of
Rs. 610 per day. Detention charge of Rs. 610
will be payable for all days, the
truck will be on hire including the day
or which it reports and the day on which
it should be released irrespective of the
hours of such reporting and release. The
cost of fuel will be borne by the owner
of the private vehicles.
The above mentioned rates have been approved as a special case only for Lok Sabha Election, 1989 and is valid up to 30th November, 1989.
The cost of fuel, etc., is to be borne by the owner of the private vehicles.
This is issued with the concurrence of the Finance Department vide its U.O. No. 3771-Fin(G)/89, dated November 6, 1989.
Sd/-
N. G. DAS 8-11-1989
Chief Electoral Officer, Tripura."
3. After the election was over the said vehicles were releas
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