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TMI Blog1973 (7) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... kerage, etc., in the sale price of the goods and has recovered and paid the tax thereon. The opponent also recovered certain amounts of expenses for postage, call-charges and bank charges by separately adding at the end of the bill. These amounts were not included in the turnover of sales by the opponent. The Sales Tax Officer added to the turnover of sales, Rs. 19,743 equal to 75 per cent of the total of such charges of Rs. 27,378 for postage, call-charges and bank charges during S.Y. 2024 and levied tax thereon. Against this assessment order there was an appeal before the Assistant Commissioner who held that such charges formed part of the turnover of sales and confirmed the order passed by the Sales Tax Officer. Against the decision of the Assistant Commissioner, the matter was taken in second appeal to the Tribunal and the Tribunal came to the conclusion that the amounts recovered as postal charges, telephone call charges and bank charges were not to be included in the sale price as they were charges for services rendered by the dealer to his customers in general. Such charges could not be equated to consideration for transfer of property in goods. At the instance of the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are included within the first part of the definition and particularly within the words "valuable consideration". The word "valuable" in the expression "valuable consideration" means consideration paid or payable in money. The word "consideration" means the amount agreed between the vendor and the vendee to be paid or payable for the transfer of property in the goods from the vendor to the vendee. Thus what is the consideration in each transaction of sale must depend upon the agreement between the parties to the transaction of sale. Again what is the "consideration" of a transaction of sale must depend upon the facts of each case. To this extent there is no dispute and both the learned Advocates agree to the said proposition of law, The argument of the learned Government Pleader is typical-and is always advanced on behalf of the revenue-namely, that the postal charges, telephone call charges and bank charges were charged along with the price of the goods and, therefore, must definitely form part of the sale price. It was also contended that these amounts do not form part of any deduction allowable by rule 46(1) of the Bombay Sales Tax Rules and, therefore, must form part of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by T.T. and in certain cases, bank charges included in the bills were refunded. Thus the aforesaid circumstance on which Mr. Desai relied cannot be relied upon for determination of the question whether telephone charges and bank charges formed part of the sale price. The Tribunal has stated that the bank charges are little bit more than what was really expended for. It is also found by the Tribunal that the postal charges have been collected at uniform rates and these amounts are not taken from those to whom the goods are not sold. But these findings of the Tribunal cannot lead to the conclusion that the postal charges, telephone charges or bank charges form part of the sale price. The mere fact that these amounts are included in the bills given by the dealer to the customer cannot lead to the conclusion that they are part of the sale price. If these charges form part of the sale price, there is no reason why they have been separately stated. There is no material on the record to indicate that the dealer would not have sold the goods if these charges were not agreed to be paid by the vendee. The amounts which are charged are for services rendered to customers in general and such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here was no provision in the statute empowering the vendor to recover the sales tax from the vendee. There was no provision under the Act empowering the dealer to recover the same as price. It was further observed that unless the price of the article was controlled, it was open to the buyer and seller to agree upon the price payable. It was further observed that if a dealer passed the tax burden to his purchaser he could only do so by adding the tax in question to the price of the goods sold. Having observed this the learned judge said that whatever collection that might be made by the dealer from his customers, the same could only be considered as valuable consideration for the goods sold. This last observation has to be read bearing in mind the facts of the case. The ratio of the case is that the tax burden which the dealer passed on to his customers could be only by way of price. The same could not be by way of services rendered. Thus the ratio laid down in the case is a limited one, and is limited to the recovery of taxes as price. In the present case, the question is whether postal charges, telephone call charges and bank charges can form part of the sale price or not. It is e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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