9911796707
TMI Blog1977 (3) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... he said company has also challenged the consequential issue of the certificate under sections 4 and 6 of the Public Demands Recovery Act, in Certificate Case No. 15-ST (BH) 72-73 for the year 1967 under the Central Sales Tax Act, 1956. The said company has stated that at all material times the same carried on and still carries on business of manufacture and supply, inter alia, of stirrup pumps and is regularly assessed to sales tax under the Bengal Finance (Sales Tax) Act as well as the Central Sales Tax Act (hereinafter referred to as the State Act and the Central Act respectively). It has also been contended by the said company that the same has so far paid all the tax demands as raised. It appears that on or about 3rd March, 1967, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities concerned was Rs. 88,882.80. In its balance sheet for the year ending 31st December, 1967, the said company duly noted that "sales returns from the Government of Madhya Pradesh and the Government of Rajasthan are Rs. 65,100.80 and Rs. 23,782.00 totalling to Rs. 88,882.80 have been deducted for the sales and transferred to stocks of finished and semi-finished goods, as on 31st December, 1967". In the impugned assessment order dated 8th September, 1971, the respondent-Commercial Tax Officer, however, added back the said amount of Rs. 88,882.80 for the year ending 31st December, 1967, and levied sales tax on the value of the entire pumps supplied by the said company including the pumps rejected by the said two Governments. Fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery of the goods, in the case of goods returned on or after the 14th day of May, 1966: Provided that satisfactory evidence of such return of goods and of refund or adjustment in accounts of the sale price thereof is produced before the authority competent to assess or, as the case may be, reassess the tax payable by the dealer under this Act; and........" It has further been held in the impugned appellate order that as the return of goods took place after more than 6 months from the date of delivery of such goods, the said company was not entitled to any deduction in respect of such goods returned under section 8A(I)(b) of the said Central Act. As a result of such determination and the assessment, a total sum of Rs. 12,148.89 became due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons and the goods were rejected by the respective Governments as mentioned hereinbefore, on the ground that they were not in accordance with the stipulated specifications, the goods had not passed to the purchaser and, as such, there was no completed sale. Mr. Sen further argued that there was no completed sale in view of the admitted rejection of the goods, so the authorities concerned were not empowered to impose a levy of the tax or penalty as mentioned hereinbefore. It may be mentioned herein, that although this rule was made ready as regards service on 27th November, 1973, neither any return to the same was filed nor anybody appeared at the time of the hearing of the rule to oppose the prayers as made. For the purpose of determinin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of inter-State trade or commerce and "sale price", which has been defined in section 2(h) of the said Central Act, means the amount payable to a dealer as consideration of the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade. In many State Laws as in West Bengal, the definition of "turnover" includes either sale price received or sale price receivable. But under the definition of the said Central Act, the conjunction is "and" and not "or", between the words "sale prices received" and "sale prices receivable". The two expressions "sale prices received" and "sale prices receivable" have in their background, reference to the two well-known systems of keeping accounts, namely, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) is allowable only on production of satisfactory evidence by the selling dealer of the return of such goods and the refund (in "cash", "cheque" or by adjustment) of the purchase price. The onus of such proof is on the selling dealer. The return of goods and rejection of the same admittedly stand on different footing. Section 8A(1)(b) has application when the goods are returned by the purchaser. Return of goods is a bilateral transaction brought about by the consent of the seller and the purchaser, which consent may have been. effected either prior to the delivery of the goods or subsequent to such delivery. Rejection of the goods on the other hand is an unilateral transaction governed by the provisions of the Contract Act or the Sale of G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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