2007 (11) TMI 116 - AT - Central Excise

Revenue s appeal is that Sales tax collected but not deposited with the Sales Tax Authorities was not deductible from the sales price - absence of any evidence from Revenue showing that the Sales Tax collected by the Respondent was with any ulterior motive deduction permitted

Summary

The appellate tribunal dismissed the Revenue's appeal regarding the deduction of Sales Tax from sales price, citing Section 37 of the West Bengal Sales Tax Act. The tribunal found no evidence of ulterior motive and upheld the first appellate authority's decision to allow the deduction, stating that once Sales Tax becomes payable, denying the deduction is not justified.