9911796707
TMI Blog1972 (11) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... such a transaction for the purpose of assessing sales tax have been laid down by the Supreme Court in its decision in Johar and Co. v. Deputy Commercial Tax Officer[1965] 16 S.T.C. 213 (S.C.).'. The court said: "This case in our opinion brings out the true nature of the payment made as hire in hire-purchase agreement. Part of the amount is towards hire and part towards the payment of price, and it would be for the sales tax authorities to determine in an appropriate way the price of the vehicle on the date the hirer exercises his option and becomes the owner of the vehicle after fulfilling the terms of the agreement. There is no legislative guidance available as to how this should be done and perhaps it would be better if the Legislature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner proposing to assess the petitioner's turnover for the year 1965-66 in the manner indicated therein. The petitioner filed a statement exhibit P-2 dated 16th March, 1970, objecting to some of the proposals. The first respondent overruled the objections and passed an order of assessment exhibit P-3 dated 23rd March, 1970. This writ petition has been filed to quash the said order, in so far as it rejected the petitioner's objections. 2.. Counsel for the petitioner assailed the order of assessment only in respect of three matters. The first was regarding the determination of the turnover in respect of sales under the hire-purchase agreements. In the notice exhibit P-1 issued to the petitioner, the first respondent proposed to adopt app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghtaway passed the impugned order within one week of the receipt of the objection, fixing the sale price of the vehicles as proposed by him. 3.. The petitioner had furnished to the first respondent a list showing the periods during which the hire of the vehicles remained in force irrespective of the periods fixed in the agreements. As already stated, in some cases it was less than the stipulated period, while in many cases it was more. It was not clear from the impugned order whether, in respect of the vehicles sold before the stipulated period, the depreciation has been allowed only for the actual period of hire or for the longer period as fixed in the hirepurchase agreement. The petitioner's reply affidavit states that in such cases the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity to adduce any evidence in respect of that matter. It would have been helpful for a proper adjudication of the matter on a quasi-judicial basis, if the first respondent furnished the petitioner the basis on which he proposed to decide this question and the petitioner produced evidence in support of its objection, if any, to the proposal made by the first respondent. The Supreme Court has also referred not only to depreciation but "all other factors that may be relevant" in fixing the sale price. There is no indication what those relevant factors would be. It may be because they vary according to the nature of the commodity or market conditions of the place. The assessee must point out what these factors are, and the Sales Tax Officer mus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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