9911796707
TMI Blog1984 (2) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Tribunal has taken the view that though the contract between the buyer and the seller provides for an all inclusive price for the goods to be supplied at the buyer's place, the split up of that price into two components, one representing the actual price of the goods and the other representing the transport charges will by itself enable the seller to claim deduction of the transport charges under rule 6(c) of the Tamil Nadu General Sales Tax Rules, 1959. The question is whether the view taken by the Tribunal is legally tenable. The respondents herein are forest contractors at Anthiyur and they had declared a taxable turnover of Rs. 5,77,107.91 in their A-2 returns for the year 1973-74. After a check of their accounts, the assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entered into contracts for the supply of bamboos to M/s. Seshasayee Paper and Boards Ltd., hereinafter called as the buyers, at Rs. 115 per ton at mill site. One of such contracts dated 25th July, 1973, is found at page 111 of the assessment file. The said contract contains the following clauses: 1.. Not less than 1000 tonnes of dry bamboo shall be supplied under this contract. 2.. The supply shall be from the abovementioned areas only delivered at mill site. 3.. The supply shall be completed on or before 31st March, 1974. No extension of time shall be allowed. 4.. The bamboo shall not be less than 1 " diameter at the thin end. They shall not be less than 5 feet and not more than 5 feet in length. 5.. Bamboo shall be free from de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n between the parties for two separate payments one as regards the actual price payable and the other as regards payment of separate transport charges. The learned counsel for the assessees relies on clause 7A in support of his submission that the charges contemplated two separate bills being made out by the assessees, one in respect of the actual price of the bamboos, and the other in respect of the transport charges. But it is not possible for us to agree with the learned counsel unless some document showing that such a procedure has been prescribed by the buyercompany is produced. It may be that the procedure prescribed by the company may relate to the time when the bills are to be preferred. Therefore, it cannot straightaway be stated f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the buyer and payments have been made. The question is whether the subsequent splitting up of the all inclusive price agreed to by the parties at the time of the original contract of sale, though with the consent of the buyer will enable the seller (assessees) to claim the benefit of rule 6(c). Rule 6(c) provides that in determining the taxable turnover the amounts specified in clauses (a) to (h) shall, subject to the conditions specified therein be deducted from the total turnover of a dealer and clause (c) refers to all amounts falling under the heads "freight" and "charges for delivery" when specified and charged for by the dealers separately without including them in the price of the goods sold. Thus normally the transport charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reement of sale fixing an all inclusive price for the supply of limestone. Subsequently, the agreement itself was amended fixing separately the price of limestone at the point of extraction and the freight and transport charges from the place of extraction to the buyer's factory. It is on the basis of the amended agreement the assessees prepared the invoices showing the sale price of the limestone and the transport charges separately and claiming deduction of the transport charges from the total turnover returned by them. On these facts this Court held that merely because the assessees had originally bargained for an all inclusive price they would not be precluded from revising the agreement subsequently and the invoices being in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
