AIR 1991 SUPREME COURT 1728 ::1991 AIR SCW 1757 ::1991 (2) UJ (SC) 159 ::1991 (3) SCC 257 ::1991 BRLJ 75 179 ::1992 (84) STC 81 ::(1992) 1 JT 89 (SC) ::1992 (1) JT 89

Supreme Court Of India

(From : Bombay)

Hon'ble Judge(s): Kuldip Singh, N. M. Kasliwal , JJ

Bombay Sales of Motor Spirit Taxation Act (66 of 1958) , S.36— Bombay Sales of Motor Spirit Taxation Rules (1958) , R.15— Motor Spirit - Claim for refund of tax from Govt. in respect of motor spirit lost on account of evaporation or leakage - Can be made by trader and not dealer - R. 15 does not suffer from illegality or discrimination. Constitution of India , Art.14— The provisions of R.15(3) which allow the refund in case the motor spirit was stored in the storage installation belonging to a trader who sells it is perfectly in order and does not suffer from any illegality in as much as the motor spirit still remains in the storage installed by the trader who sells it and the quantity of the motor spirit is reduced on account of evaporation or leakage at the stage of first sale which is liable to tax. So far as the dealers are concerned, they purchase the motor spirit and make the payment of its price along with the sales tax to the licensed traders and thereafter any further sale made by them to the consumers is not liable to any tax and as such they cannot claim any refund of tax in respect of any quantity of motor spirit being lost on account of evaporation or leakage. The dealers paid sales tax on a quantity of motor spirit actually purchased and delivered to them by the selling trader. The provisions of R.15(3) are thus neither discr....