1981 (7) TMI 227 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of taxable turnover for the assessment year 1969-70.
2. Exemption from tax in respect of transport charges.
3. Dispute regarding whether transport charges were pre-sale charges.
4. Admissibility of sale bills mentioning freight charges separately.
5. Interpretation of Madras Bricks (Control of Price and Supply) Order, 1965.
6. Treatment of total amount received as a single sale amount.
7. Controverting postulates in the pre-assessment notice.
8. Deemed pre-sale charges for delivery at the site of the purchases.

Analysis:
The revision petition was filed against the Sales Tax Appellate Tribunal's order for the assessment year 1969-70. The assessee, engaged in the manufacture and sale of bricks, had a fixed total turnover of Rs. 2,76,967.37 and taxable turnover of Rs. 2,04,892. The assessee was granted exemption from tax on transport charges for delivering bricks to purchasers' sites. An inspection revealed that the freight charges collected were considered pre-sale charges. The Tribunal upheld this view, leading to the current revision petition.

The petitioner argued that freight charges were separately billed and not pre-sale charges. However, the department contended that these charges were part of the sale price and taxable. The petitioner belatedly produced sale bills mentioning freight charges separately, which were not admitted due to lack of earlier submission or explanation for the delay. Reference to the Madras Bricks Order, 1965, was made at a late stage, impacting the authorities' examination of compliance with price regulations.

The Tribunal inferred from sales tax records that the assessee treated total amounts as single sale amounts, not disputing pre-assessment notices indicating delivery at purchasers' sites with transport charges included. The Tribunal found no grounds for interference, concluding that the assessee delivered goods to purchasers' sites with transport charges included in the sale price. Thus, the revision petition was dismissed without costs.

In conclusion, the judgment addressed issues related to taxable turnover assessment, exemption from tax on transport charges, determination of pre-sale charges, admissibility of belatedly produced sale bills, interpretation of regulatory orders, treatment of sale amounts, and adherence to pre-assessment notices. The Tribunal's decision was upheld based on the assessee's delivery practices and lack of evidence to challenge the pre-sale charges determination.