2012 (8) TMI 1205 - HC - VAT and Sales Tax

Summary

Issues involved: Revision filed against tribunal's order considering outward freight as part of turnover for assessment year 2009-10.

Details of the judgment:

The revisionist entered into two contracts with the railways - part A for supply of stone ballast and part B for transportation. The rates for both parts were separate and distinct, argued by the revisionist's counsel. The goods' price and transportation charges were separately identifiable, forming part of turnover, as per the counsel.

The counsel relied on the definition of "turnover" in U.P. Trade Tax Act, specifically referring to Explanation II (i) which excludes cost of freight or delivery when separately charged. A previous court decision, M/s. Aruna Trading Company versus C.S.T., supported the separation of transportation costs from turnover when agreed upon separately.

The tribunal's reliance on India Meters Limited versus State of Tamilnadu was contested, as it pertained to different tax rules. The court directed the tribunal to re-decide the case, focusing on whether the prices in the contracts were actually paid by the railways. The tribunal was instructed to allow the revisionist an opportunity to present evidence and decide the matter within three months.

In conclusion, the impugned tribunal order was set aside, and the revision was allowed with no costs incurred.