1987 (2) TMI 475 - SC - VAT and Sales Tax

Whether the administrative surcharge and price equalisation charge could be legitimately included in the turnover of the appellant assessable to tax under the Kerala General Sales Tax Act, 1963? Held that - The appeals are allowed and the orders of the High Court and the Appellate Tribunal are set aside in respect of the administrative surcharge and the price equalisation charge included in the assessments of the appellant for the assessment years 1969-70 to 1972-73. The tax paid by the appellant in respect of these two items shall be refunded by the respondents expeditiously.

Summary

The Supreme Court allowed the appeal by the Food Corporation of India against the High Court of Kerala's judgment, stating that the administrative surcharge and price equalisation charge collected by the appellant should not have been included in the taxable turnover. The court ordered the tax paid on these items to be refunded to the appellant.