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TMI Blog1956 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... Bihar, in appeal. The appeal petition, numbered as Case No. S.T.C. 1 of 1952 in the Deputy Commissioner's Court, is enclosed (Exhibit B). The learned Deputy Commissioner of Sales Tax, Bihar, after hearing the parties, remanded the case subject to the observations made in his order, dated 23rd October, 1952, enclosed (Exhibit C). 4.. The assessee then came up in revision before the Board of Revenue, Bihar, by a petition filed on 22nd December, 1952. The petition before the Board is enclosed Exhibit D. The Board, after hearing the parties, rejected the petition subject to setting aside the order levying tax on despatches and sales for the period from the 26th January, 1950. The Board's order dated 3rd October, 1953, is enclosed (Exhibit E). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od had been legally included in the assessee's turnover and taxed under the Bihar Sales Tax Act? (vii) Whether the addition of the amount of railway freight collected by the petitioner along with the price of materials sold by him had been legally included in his turnover and taxed under the Bihar Sales Tax Act?" The reference petition is enclosed (Exhibit F). 6.. The Board, after hearing the parties, refers for the decision of the High Court only five questions of law, viz., Nos. (iii) to (vii) above, for the reasons recorded in the Board's resolution dated 18th May, 1954, enclosed (Exhibit G). Further Statement of Case under section 25(4) of the Bihar Sales Tax Act, 1947, by the Board of Revenue, Bihar, dated the 23rd October, 1954. Cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the petitioner's turnover and taxed under the Bihar Sales Tax Act of 1947? and, (ii) Whether the definition of sale in section 2(g) of the Bihar Sales Tax Act of 1947, as amended by Bihar Act VI of 1949, was ultra vires the Bihar Legislature?" 3.. These two questions have been dealt with elaborately in paragraph 3 of Mr. C.K. Raman's judgment dated 18th May, 1954, in Case No. 712 of 1953, forwarded in original (as Exhibit G) with the previous statement referred to above. Mr. Raman considered these questions together as they cover the same point. The learned Advocate for the petitioner challenged the validity of the second proviso to section 2(g) of the Act, as inserted by section 2(1) of the Bihar Sales Tax (Amendment) Act, 1948 (Bih ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The State of Madras(2). 5.. As the matter appeared to have been settled by authority the Board did not consider that there was any necessity of referring these two questions raised by the petitioner to the High Court for decision. In view of the orders of the High Court the Board now refers them for the decision of the High Court, along with the other five questions of law already referred to the High Court for decision as mentioned above. Baldeva Sahai and R. Prasad, for the petitioners. The Advocate-General and R.J. Bahadur, for the opposite party. JUDGMENT RAMASWAMI, C.J., and RAJ KISHORE PRASAD, J.- In these cases the Board of Revenue has referred the following questions of law under section 25 of the Bihar Sales Tax Act fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover and taxed under the Bihar Sales Tax Act? (7) Whether the addition of the amount of railway freight collected by the petitioner along with the price of materials sold by him had been legally included in his turnover and taxed under the Bihar Sales Tax Act?" Six of these questions have been examined by the High Court in a previous case, namely, Tata Iron and Steel Co. Ltd. v. The State of Bihar[1956] 7 S.T.C. 158. The constitutional question has been elaborately discussed and the conclusion was reached that the provisions of section 2(g) of the Bihar Sales Tax Act (Bihar Act XIX of 1947) as amended by Bihar Act VI of 1949 were constitutionally valid. The High Court also expressed the opinion that it was not necessary for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale price under section 2(h) and so does not constitute part of the taxable turnover of the registered dealer. For the same reasons we answer questions (5) and (6) in the present case in favour of the assessee and against the State of Bihar. As regards question No. (7), Mr. Baldeva Sahay put forward the argument that the amount of railway freight collected by the petitioners ought not to be included in the taxable turnover of the petitioners. In support of his argument learned counsel referred to section 2(h) of the Bihar Sales Tax Act which defines "sale price" to mean "the amount payable to a dealer as valuable consideration for- (i) the sale or supply of any goods, less any sum allowed as cash discount according to ordinary trade pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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