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1996 (8) TMI 506 - AT - VAT and Sales Tax
Issues:
1. Interpretation of the term "sale price" under the Rajasthan Sales Tax Act, 1954. 2. Applicability of Central Sales Tax (CST) on turnover inclusive of Central excise duty. 3. Reimbursement of Central excise duty by the Central Government and its impact on the sale price for CST levy. Detailed Analysis: Issue 1: Interpretation of "sale price" The Tribunal examined the definitions of "sale" and "sale price" as per the Central Sales Tax Act. It was highlighted that the sale price is the consideration payable for the transfer of goods and should not include amounts not paid or payable by the purchaser. The correct definition of "sale price" as per the CST Act was emphasized for determining the turnover for CST levy. Issue 2: CST on turnover inclusive of Central excise duty The Tribunal deliberated on whether CST is chargeable on turnover inclusive of Central excise duty, even if the duty is reimbursed by the Central Government. It was clarified that if the excise duty is not included in the sale price charged from the purchaser, it should not be considered as part of turnover for CST purposes. The Tribunal emphasized that tax liability under CST is based on the consideration received from the purchaser and not on reimbursements received from other sources. Issue 3: Reimbursement of Central excise duty The Tribunal analyzed the impact of reimbursement of Central excise duty by the Central Government on the sale price for CST levy. It was concluded that Central excise duty reimbursed by the government, not paid by the purchaser, should not be included in the sale price for CST calculation. The Tribunal cited precedents from the Andhra Pradesh High Court and the Maharashtra Sales Tax Tribunal to support the position that excise duty reimbursed by the government does not form part of the sale price for CST levy. In light of the above analysis, the Tribunal rejected the applications for revision, stating that Central excise duty reimbursed by the government and not paid by the purchaser should not be considered for CST levy. The assessment orders pertaining to the inclusion of Central excise duty in turnover for CST were set aside, and no interest or penalty was applicable in this scenario.
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