1968 (10) TMI 100

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tax. The typical reasoning of the revenue for doing so is that the amount was charged and paid at the time of sale "along with the price of the goods " and so, it formed part of the turnover within the meaning of the definition of "turnover". An additional reason in support of that view was that lot cooly could not also fall within the scope of any of the items for which deduction was provided by rule 6 of the Madras General Sales Tax Rules, 1959. Broadly, therefore, the view maintained by the revenue is that charges, which may well be described as pre-sale charges, should be treated as part of the consideration for a sale and the lot charges partook of that character. The charges appear to be paid by the customers, no doubt, at the time of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e in respect of lot cooly charges. In our opinion, the Explanation cannot be read in the abstract. Its context is with reference to the sale and turnover as defined. It is now well settled that the expression "sale of goods" in the State Legislative entry bears the same meaning and scope as it has been understood in the legislative practice of this country since the enactment of the Sale of Goods Act. The object of the Madras General Sales Tax Act is to levy a general tax on the sale or purchase of goods in the State. It is clear, therefore, that what could legitimately be brought to tax under the Act is the aggregation of the consideration for the transfer of property in the goods. Obviously, it should follow that service charges cannot be .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ade on a percentage basis and without reference to the actual labour charges paid with reference to the service rendered to each customer. That is not a matter which has been examined by the revenue. If the collection by way of lot cooly charges is in excess of the actual service charge incurred and paid by the assessee, we are not called upon in these petitions to express an opinion as to whether such excess can by any view of the matter, form part of the price. But we think that the revenue should have an opportunity to go into that question. It will, therefore, be at liberty to consider and dispose of the matter after notice to the assessees, and, if they so desire, hearing them. No costs. Petitions allowed. - - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X