1979 (8) TMI 186

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..... r reimbursement of the amount of sales tax to the appellant in case the appellant was liable to pay the same under the Central Sales Tax Act, 1956, and the Rajasthan Sales Tax Act, 1954. We thought that in the absence of any such clause in the contract, there would be no legal liability on the Central Government to pay to the appellant the amount of sales tax on the freight component of the price in respect of transactions of sale of cement entered into by the appellant with the Director-General of Supplies and Disposals
BHAGWATI P.N. AND TULZAPURKAR V.D. JJ. -------------------------------------------------- ORDER This application for review is directed against certain observations made by this Court in the course of the judgment .....

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..... appellant was, therefore, not justified in claiming to recover the amount of sales tax from the Central Government and in view of this statement made on behalf of the Central Government the appellant did not press its claim to recover the amount of sales tax on the freight component of the price from the Central Government. We got the impression that having regard to the opinion of the Law Department of the Government of India, no clause was introduced in the contract with the Director-General of Supplies and Disposals providing for reimbursement of the amount of sales tax to the appellant in case the appellant was liable to pay the same under the Central Sales Tax Act, 1956, and the Rajasthan Sales Tax Act, 1954. We thought that in the ab .....

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..... e Director-General of Supplies and Disposals which provides that "sales tax, if legally leviable, will be paid in addition to the price given in clause (4) of the Rate Contract ". This clause clearly stipulates that whatever is the amount of sales tax legally leviable from the appellant would be reimbursed by the Central Government to the appellant. The Central Government is plainly under a liability to pay to the appellant the amount of sales tax in respect of freight component of the price since that is held to be chargeable to the appellant both under the Central Sales Tax Act, 1956, and the Rajasthan Sales Tax Act, 1954. The assumption on which we made the above observations has been shown to be unfounded and these observation .....

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