1987 (2) TMI 474 - SC - VAT and Sales Tax

Whether the respondent was entitled to charge sales tax over and above the listed price as indicated in the price list? Held that - Appeal dismissed and confirm the order passed by the High Court. The High Court has taken the view that the parties were fully aware of the prices and terms and conditions in regard to charging of sales tax extra as mentioned in the price list. Ruling prices according to the said terms and conditions were subject to the sales tax being paid extra in case sales tax liability came into existence and Accordingly there was no error apparent on the face of the award. We think that the view taken by the High Court is unexceptionable.

Summary

The Supreme Court upheld the High Court decision regarding an arbitration award favoring the respondent in a dispute over charging sales tax on motor spare parts supply. The Court found the award to be speaking and valid, as it provided reasons for the decision. The High Court's view that the parties were aware of the terms and conditions regarding sales tax was deemed correct. The appeal was dismissed, with no costs awarded.