9911796707
TMI Blog1975 (4) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay sales tax paid in Maharashtra State by the assessee on their purchase of tractors. For the assessment year 1966-67, the respondent-assessee submitted a total taxable turnover of Rs. 4,18,58,543.98 and Rs. 2,68,03,833.90, respectively, and had claimed exemption to an extent of Rs. 4,97,450.74 on the ground that they represented sales of medicinal preparations containing alcohol and, therefore, under section 8 read with item 3 of the Third Schedule, they are exempt. The Appellate Assistant Commissioner gave a relief except to an extent of Rs. 45,325.77. The rejection in respect of this amount was on the ground that there was no proof of payment of excise duty on this sum of Rs. 45,325.77 on the entire quantity, and not merely on the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Essential Commodities Act, 1955. Under that Order, a dealer cannot sell the tractors exceeding the sale price fixed under clause 4 of that Order. "Sale price" is defined as meaning the amount payable to a manufacturer or dealer as consideration for the sale of a tractor inclusive of any charges for cost of freight or delivery, but exclusive of any sum charged as tax on the tractor as a finished product. In exercise of the power under clause 4, the Government of India fixed the price of tractors at Rs. 20,900 each. While selling these tractors to the various persons in this State, the assessee charged the sale price of Rs. 20,900 for each of these tractors and added to this money the sales tax paid by them to the Maharashtra Government a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given effect to the Order of the Government of India in their letter dated 2nd March, 1967, we do not think that an assessee could have ignored this letter with impunity. Further, whether this letter had any legal effect or not, when the Government of India had fixed the price and the dealer was charging that price and separately collecting sales tax, we cannot hold that the dealer intended to include the sales tax in the price of the tractor itself. The Price Control Order itself, which later on came to be made under the Essential Commodities Act, injuncted the dealer from selling the tractor at a price exceeding the sale price fixed by the Government of India. Therefore, we have no doubt that the sales tax paid by the dealer to the Mahar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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