1987 (2) TMI 446

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of "turnover" indicates what has to be excluded from it. After the exclusion what remains is clearly taxable.
PATHAK R.S. AND RANGANATH MISRA JJ. S.T. Desai, Senior Advocate (Kailash Vasdev and Naunit Lal, Advocates, with him), for the appellants. T.V.S.N. Chari, Ms. Vrinda Grover, Ms. Sunita and W.A. Qadri, Advocates, for the respondent. -------------------------------------------------- The judgment of the Court was delivered by RANGANATH MISRA, J.-Special leave has been granted limited to the question as to whether insurance charges is a part of "turnover" under section 2(s) of the Andhra Pradesh General Sales Tax Act, 1957, for purposes of levy of sales tax. The tax authorities relying upon the definition of "turnover" hel .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the insurance premium was paid at the instance of the purchaser. The contention was rejected. In the appellate order it is recorded that the company collected at a uniform rate and observed: 'it is not the case of the appellants that the buyers had desired that the transit should be covered on their behalf. On the contrary The company, it was held, did not charge insurance at the behest of the buyer. Before the Tribunal in the second appeal, as a fact it is found, the insurance premium was not paid at the behest of the purchaser............ The counsel for the company asserted that the facts recorded in the first appeal and the Appellate Tribunal are not correct................ To sum up, the amount collected by the company towards insu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... on is not in issue and since the bill of sale included insurance charges and the assessee-appellant recovered the amount as part of the consideration for the transaction of sale there is no force in the challenge raised by the appellant against the demand. The explanation attached to the definition of "turnover" indicates what has to be excluded from it. After the exclusion what remains is clearly taxable. At the hearing reference has been made by learned counsel for the appellant to certain authorities but we do not consider it necessary to refer to them particularly when the position is clear on the basis of the definition contained in the Act. The appeals fail and are dismissed. Parties are directed to bear their own costs. Appeals .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X