1988 (8) TMI 389 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of "sale price" under the Rajasthan Sales Tax Act, 1954 regarding inclusion of "tulai" (weighing charges) in the taxable amount.

Analysis:
The revision before the Rajasthan High Court involved the question of whether "tulai" charges in the sale of goods by the assessee should be considered as part of the sale price under the Rajasthan Sales Tax Act, 1954. The assessing authority had imposed tax on the weighing charges received by the assessee during the assessment year 1969-70. The Board of Revenue initially held that "tulai" charges could not be included in the sale price for tax purposes. However, the Division Bench of the Board of Revenue affirmed this decision. The petitioner sought a reference to the High Court, which was not disposed of within the prescribed period, leading the petitioner to file an application under section 15(3A) of the Act. Subsequently, due to an amendment in the Act, the reference application was treated as a revision under section 15 of the Act.

The primary issue for consideration was whether the "tulai" charges estimated by the assessing authority were part of the sale price as defined in section 2(p) of the Act. The definition of "sale price" includes any sum charged for activities done by the dealer in relation to the goods before delivery, apart from certain specified costs. The Court referred to a Supreme Court decision regarding a similar provision in the U.P. Sales Tax Act, where it was held that "tulai" charges would be considered part of delivery charges and could be exempt from tax if separately charged for each sale transaction. The Court noted the similarity between the definitions of "purchase price" and "sale price" in the two Acts, emphasizing the importance of separate charges for "tulai" to claim exemption.

The Court found that there was no evidence or finding to suggest that the "tulai" charges were separately charged by the assessee for each sale transaction. The assessing authority had estimated the amount received on account of "tulai" but had not indicated separate charges for each transaction. As a result, the Court concluded that since the charges were added to the taxable turnover without being separately charged, they were considered part of the sale price and subject to tax. The Court dismissed the revision, stating that there was no merit in the petitioner's argument. The revision was accordingly dismissed with no order as to costs.