Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 6 - BOMBAY HIGH COURTConstitutional validity of some of the provisions of the Maharashtra Purchase Tax on Sugarcane Act, 1962 - Interpretation - determination of purchase price - valuation - inclusion of expenses - the amendments were carried out from 1st October, 1995 to change the structure of taxation - Held that:- On a reading of the provisions together and harmoniously, we are not in agreement with Mr. Joshi that the tax is on expenses or expenditure and not on purchase of sugarcane. The above provisions have been minutely referred by us together with those enabling recovery of tax. There is a inherent fallacy in the submission of the Petitioners that components which are not germane or relevant to the purchase of sugarcane and the price paid therefor are taken into consideration by the legislature. It is apparent that the term "purchase price" is defined in such a way as to include amounts mentioned in sub-clauses (i) to (iii) of section 2(f-b) of the Act of 1962. Once it is apparent that the components or elements stated therein go into fixation of purchase price and that is the measure for computation of the tax, then, depending upon facts and circumstances in each case, the occupier can point out that not all components or elements are included in the purchase price in his case. That it is only the actual costs which have been taken into account or that they have not included all the heads simply because not all of them form part of the purchase price. Then, it would be open for the Assessing Officer/Commissioner to consider such pleas and material in support thereof. He would, then, compute the tax liability after duly considering them. However, it is the turnover of purchases meaning the aggregate of the amounts of purchase price paid and payable by an occupier, on which tax is levied and collected. The turnover is computed on the basis of the purchase transactions and the price paid for the same. Thus, it would be open for the Petitioners to point out that the turnover of purchases in their case involves payment of purchase price without the elements that are set out in the definition of the term "purchase price" referred above. The computation of the purchase price is indicated so that the tax to be levied and collected is correctly computed. If sum total of the purchases would constitute the turnover and the measure of that would be the amount of purchase price paid and payable by an occupier during the given period, then, it is only to enable the assessment and collection of tax in accordance with law that these provisions have been inserted. Thus, we are in complete agreement with Mr. Sonpal on the legality and validity of the tax. It is not unconstitutional and ultra vires as alleged. Decided against the appellants/ assessee.
|