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TMI Blog1978 (4) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... in addition to the point as to the assessability of the turnover of containers, a further point arises as to whether the insurance charges in respect of the goods sold are liable to be excluded from the turnover. 2.. We may notice the facts of T.R.C. No. 12 of 1977 as representative of the first batch of cases. The assessee, M/s. McDowell & Co., manufactures foreign liquor at Shertallai and sells the same both locally and by way of interState transactions. They are also dealers in spirits and empty bottles. The invoice-war statement of sales filed at the time of the hearing before the Sales Tax Officer disclosed a gross turnover of Rs. 7,36,058.79 under the Central Sales Tax Act for the year 1962-63. Besides sale of liquors, sale of bottles, sale of packing cases, etc., it included an amount of Rs. 80,238.80 described as "deposit on bottles". The Sales Tax Officer allowed the deduction in respect of this claim to the extent to which the assessee was able to prove the return of the bottles, viz., Rs. 18,614.24. On appeal, the Appellate Assistant Commissioner found that realising the amounts described as deposits for the bottles, the company had charged a price for the bottles as pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged." On the facts found which show that the amount of deposits for bottles was separately invoiced and differently treated in the accounts and that, on the nature of the transaction, it cannot be regarded as an integral part of the sale price, we do not think it satisfies the definitions of "turnover" and "sale price" as extracted supra. 4.. Counsel for the revenue placed strong reliance on the decision of the Supreme Court in Punjab Distilling Industries Ltd. v. Commissioner of Income-tax, Simla[1959] 35 I.T.R. 519 (S.C.). , to contend that the transaction was a sale and the amount representing deposits on bottles was part of the sale price. It seems to us that the decision of the Supreme Court cannot be pressed into service in considering the provisions of an Act quite differently worded and of a transaction the incidents of which are materially di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demanded and received by the appellant were trade receipts and therefore assessable for the purpose of income-tax. The High Court had held that they were. The Supreme Court sustained the decision. It endorsed the High Court's reasoning that the company was charged an extra price for the bottles. The Supreme Court was of the view that the trade of sale of liquor and the consideration of the sale was constituted by several accounts respectively called the price of liquor, the price of the bottles, and the security deposit; and that unless all these sums were paid the appellant would not have sold the liquor. The court proceeded to consider what would be the position if the amounts were not part of the price. Posed the court: "Now, if these additional sums were not part of the price, what were they? Mr. Sastri said that they were deposits securing the return of the bottles. According to him, if they were such security deposits, they were not trading receipts. Again we are unable to agree. There could be no security given for the return of the bottles unless there was a right to their return for if there was no such right, there could be nothing to secure............................. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e delivery of container and on the contingency of redelivery back of the containers the price so deposited was to be refunded in whole or in part as the case may be whether the containers were redelivered as a whole or partially." The court found that the conditions on which the deposits against beer bottles were made were substantially similar to the conditions against which a deposit against country liquor was made. Addressing itself to the question whether the facts established a sale or a bailment the court had noticed the argument that the containers were sold when they were returned after the use or consumption or sale of the liquor, and observed: "The sale of containers is not in the way of the trade of the assessee. It does not receive the cost of bottles as 'price'. The cost is taken as deposit. No sales tax is charged on the cost from wholesale vendors. They deposit the 'probable cost' of bottles. It seems there is no profit-making. Bottled liquor is sold to wholesale vendors. Bottles serve as receptacles of liquor. They may keep them till the liquor is consumed. As soon as they are empty, they should be returned to the assessee. All this appears to be the normal course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime of assessment by the first assessing authority: Provided that if the prescribed authority is satisfied that the person concerned was prevented by sufficient cause from furnishing such declaration or certificate within the aforesaid time, that authority may allow such declaration or certificate to be furnished within such further time as that authority may permit." We think the Tribunal went too far in making such a direction. At the most, this should have been a matter of discretion for the Sales Tax Officer. This was freely conceded by the counsel appearing for the assessee. In these three revision cases, we accordingly vacate the direction of the Appellate Tribunal directing the Sales Tax Officer to afford an opportunity to the assessee to produce the C form declarations. These revisions will stand allowed to this limited extent and dismissed otherwise. 7.. In T.R.C. Nos. 55 to 59, 62 and 104 of 1977, in addition to the assessability of the turnover on the deposit of bottles which we have dealt with in the first batch of revision cases, an additional question arises, viz., whether the Tribunal was right in allowing deduction of the insurance charges. The definition of "tur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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