9911796707
TMI Blog1977 (3) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... anipur Charge (respondent No. 1), and the appellate order dated 16th February, 1973, made in Appeal Case No. 777 of 1971-72 by the Assistant Commissioner, Commercial Taxes, Calcutta (South) Circle (respondent No. 2). The said company has also challenged the consequential issue of the certificate under sections 4 and 6 of the Public Demands Recovery Act, in Certificate Case No. 15-ST (BH) 72-73 for the year 1967 under the Central Sales Tax Act, 1956. The said company has stated that at all material times the same carried on and still carries on business of manufacture and supply, inter alia, of stirrup pumps and is regularly assessed to sales tax under the Bengal Finance (Sales Tax) Act as well as the Central Sales Tax Act (hereinafter refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust, 1970, written by the Deputy Director of Medical and Health Services, Rajasthan, and 28th October, 1968, from the Director of Health Services, Madhya Pradesh. The total value of the stirrup pumps so rejected by the authorities concerned was Rs. 88,882.80. In its balance sheet for the year ending 31st December, 1967, the said company duly noted that "sales returns from the Government of Madhya Pradesh and the Government of Rajasthan are Rs. 65,100.80 and Rs. 23,782.00 totalling to Rs. 88,882.80 have been deducted for the sales and transferred to stocks of finished and semi-finished goods, as on 31st December, 1967". In the impugned assessment order dated 8th September, 1971, the respondent-Commercial Tax Officer, however, added back th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h goods,- (i) within a period of three months from the date of delivery of the goods, in the case of goods returned before the 14th day of May, 1966; (ii) within a period of six months from the date of delivery of the goods, in the case of goods returned on or after the 14th day of May, 1966: Provided that satisfactory evidence of such return of goods and of refund or adjustment in accounts of the sale price thereof is produced before the authority competent to assess or, as the case may be, reassess the tax payable by the dealer under this Act; and........" It has further been held in the impugned appellate order that as the return of goods took place after more than 6 months from the date of delivery of such goods, the said company wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the present rule was obtained. Mr. Sen appearing in support of the rule contended that since in the instant case there was a contract for sale of stirrup pumps according to the stipulated specifications and the goods were rejected by the respective Governments as mentioned hereinbefore, on the ground that they were not in accordance with the stipulated specifications, the goods had not passed to the purchaser and, as such, there was no completed sale. Mr. Sen further argued that there was no completed sale in view of the admitted rejection of the goods, so the authorities concerned were not empowered to impose a levy of the tax or penalty as mentioned hereinbefore. It may be mentioned herein, that although this rule was made ready a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here cannot be a sale or supply of goods by the seller to himself. "Turnover" would mean the aggregate of the sale prices received and receivable by the dealer in respect of sale of any goods in the course of inter-State trade or commerce and "sale price", which has been defined in section 2(h) of the said Central Act, means the amount payable to a dealer as consideration of the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade. In many State Laws as in West Bengal, the definition of "turnover" includes either sale price received or sale price receivable. But under the definition of the said Central Act, the conjunction is "and" and not "or", between the words "sale prices re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods, (ii) for goods returned on or after 14th May, 1966, the goods must have been returned within a period of 6 months from the date of the delivery of the goods. The deduction under section 8A(1)(b) is allowable only on production of satisfactory evidence by the selling dealer of the return of such goods and the refund (in "cash", "cheque" or by adjustment) of the purchase price. The onus of such proof is on the selling dealer. The return of goods and rejection of the same admittedly stand on different footing. Section 8A(1)(b) has application when the goods are returned by the purchaser. Return of goods is a bilateral transaction brought about by the consent of the seller and the purchaser, which consent may have been. Effected ..... X X X X Extracts X X X X X X X X Extracts X X X X
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