1979 (11) TMI 252 - HC - VAT and Sales Tax

Summary

Issues:
1. Deduction on account of freight and delivery charges under the State Act
2. Determination of sales as intra-State or in the course of inter-State trade or commerce

Analysis:

Issue 1: Deduction on account of freight and delivery charges under the State Act
The case involved a dispute regarding the admissibility of deduction on account of freight and delivery charges under the M.P. General Sales Tax Act. The assessee claimed 12 paise per kilolitre per kilometre as freight and delivery charges, with a portion of 9.913 paise per kilolitre per kilometre being allowed by the first appellate authority and maintained by the Board of Revenue. However, the remaining amount claimed by the assessee for other incidental expenses incurred was not adequately supported by evidence. The Board held that the assessing officer and the first appellate authority did not provide a proper opportunity for the assessee to substantiate these additional charges. Consequently, the Board remanded the case for further investigation to ascertain the actual incidental expenses incurred by the assessee as freight and delivery charges. The Court determined that no question of law was involved in this issue, and the question was answered in the affirmative, against the department.

Issue 2: Determination of sales as intra-State or in the course of inter-State trade or commerce
The second issue revolved around whether the sale of goods worth Rs. 1,80,000 to M/s. R.R. Contractors should be treated as intra-State sales or sales in the course of inter-State trade or commerce. The Board found as a fact that the goods were delivered to M/s. R.R. Contractors within Madhya Pradesh as common carriers and not as distributors. Additionally, it was established that the goods were ultimately sold by M/s. R.R. Contractors in places outside Madhya Pradesh. Relying on a previous court decision, the Board concluded that the delivery of goods to M/s. R.R. Contractors constituted sales in the course of inter-State trade and commerce. The Court upheld this finding as a question of fact, and no legal issue was identified. Therefore, the sale of Rs. 1,80,000 representing the value of goods supplied to M/s. R.R. Contractors was deemed to be in the course of inter-State trade and commerce.

In conclusion, the High Court of Madhya Pradesh addressed the issues raised regarding deduction of freight and delivery charges under the State Act and the classification of sales as intra-State or in the course of inter-State trade or commerce. The judgment provided detailed analysis and clarification on each issue, ultimately resolving the questions referred for its opinion.