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1963 (2) TMI 37 - HC - VAT and Sales Tax
Issues:
1. Inclusion of excise duty and vend fee in turver for sales tax calculation. 2. Assessment under section 21 of the U.P. Sales Tax Act. Detailed Analysis: Issue 1: The first issue revolves around whether excise duty and vend fee paid by the assessee should be included in the turver for sales tax calculation. The court examined the contention that the amount paid by the assessee on behalf of customers as excise duty and vend fee should not form part of the turver. The court noted that the amount paid by the assessee was realized from customers at the time of sale, in addition to the price of the goods. The court referred to Supreme Court decisions to establish that when the seller passes on the tax and the buyer agrees to pay sales tax in addition to the price, the tax becomes part of the entire consideration. The court concluded that the amount paid by the assessee as excise duty and vend fee was liable to be included in the turver for sales tax calculation. Issue 2: The second issue pertains to the assessment under section 21 of the U.P. Sales Tax Act. The court clarified that section 21 is broad enough to cover cases where there is an omission to assess the whole or part of the turver in any particular year, even if it is due to a mistake or omission by the assessing authority. The court rejected the argument that since the assessee had disclosed the amount of excise duty and vend fee but had not included it in the turver, there was concealment on its part. The court held that there was no requirement for concealment or the discovery of fresh material for an assessment under section 21. Therefore, the court answered the second question in the affirmative, allowing the assessing authority to make an assessment even if there was an omission in the initial assessment. In conclusion, the court ruled in favor of including the excise duty and vend fee in the turver for sales tax calculation and upheld the assessing authority's right to make an assessment under section 21 of the U.P. Sales Tax Act. The court ordered the assessee to pay the costs of the reference and directed the distribution of copies of the judgment to the relevant authorities as per the statutory requirements.
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