Purchased Assets of Company in Liquidation inclusive of Taxes : Buyer isn't liable to sales tax

Buyer isn't liable to sales tax when he offered an amount inclusive of all taxes to purchase assets of company in liquidation

[2015] 58 taxmann.com 27 (SC)

SUPREME COURT OF INDIA

Hindustan Urban Infrastructure Ltd.

v.

Assistant Commissioner, Ernakulam

Section 5 of the Kerala General Sales Tax Act, 1963 - Levy of tax - On sale or purchase of goods- Official Liquidator, in order to settle liabilities of a company in liquidation, issued a notice inviting tenders in respect of sale of assets of said company - Appellant had offered its highest bid, which was inclusive of all statutory levies such as sales tax, etc. - Offer so made was accepted by Official Liquidator - Appellant, in order to move aforesaid assets beyond boundaries of State of Kerala, had requested Official Liquidator to indicate his sales tax registration number in sales tax certificate, which request was rejected - Whether there was a concluded contract between Official Liquidator and appellant - Held, yes - Whether since appellant had specifically indicated to Official Liquidator that offer made by it was inclusive of all statutory levies, liability to pay taxes could not be imposed on appellant - Held, yes [Para 10] [In favour of appellant]