9911796707
TMI Blog1992 (2) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... the deduction from the turnover as provided under sub-section (1) of section 8-A of the Central Sales Tax Act, 1956?" 2.. Background facts as indicated by the Tribunal in the statement of facts drawn are as follows: For the assessment year 1981-82, M/s. Ghewarchand Kamal Kumar (hereinafter referred to as "the assessee") filed its returns as required under the Central Sales Tax Act, 1956 (in short "the Central Act") and the Central Sales Tax (Orissa) Rules, 1957 (in short "the Central Rules"). The Sales Tax Officer being of the view that the assessee had not collected or paid any tax on sales in the course of inter-State trade, treated the gross turnover of Rs. 52,23,001.60 to be the net turnover for the purpose of tax. Since a sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms from the purchasing registered dealers against his sales in the course of inter-State trade, it was obvious that the dealer-assessee had charged the concessional rate of tax at 4 per cent on such sales, although not shown separately in the bills or accounts. It was held that the amount was inclusive of the sales tax component and filing of "C" form amply proved that the sales tax component has been included in the turnover of sales and formed part of the sale price, and the assessee was entitled to the benefit of deduction as provided in section 8-A of the Central Act. The matter was remitted to the assessing officer to redetermine the turnover in the light of the observations made. At the instance of the Revenue, the question as referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power is also being taken to prescribe other deductions having regard to the prevalent market conditions, facility of trade and interests of consumers." In Tata Iron & Steel Co. Ltd. v. State of Bihar [1958] 9 STC 267 (SC), AIR 1958 SC 452, it was held that the sale price for purposes of calculation of taxable turnover of a dealer includes the sales tax. The effect of this view has been that even though a dealer charged sales tax on all his sales, he had still to pay as sales tax from his own pocket. Clause (a) of sub-section (1) of section 8-A prescribes a formula for deduction of turnover of a dealer for the purpose of the Act to do away with this difficulty of the dealers. The principle underlying the formula is that no tax should be l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggregate of sale prices. "Turnover" has been defined in section 2(j) of the Central Act to mean the aggregate of the sale prices received and receivable by a dealer in respect of sales of any goods in the course of inter-State trade or commerce made during any period and determined in accordance with the provisions of the said Act and the Rules made thereunder. The manner of determination of inter-State turnover of a dealer is indicated in section 8-A. The expression "sale price" has been defined in section 2(h). "Price" is the amount of consideration which a seller charges the buyer for parting with the title to the goods. The entire amount of consideration including sales tax component which purchaser pays therefore constitutes price of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bstantiate the stand. Before the Tribunal, it was simply stated that the assessee was entitled to deduction as per section 8-A of the Central Act. It is for the assessee to establish that the price included the tax element to have the benefit of the formula since there was no separate indication of collection of tax. In the instant case, the Tribunal came to the presumptuous conclusion that filing of "C" forms amply proved that the tax component has been included in the turnover of sales. This was not the case of the assessee before any of the forums below. It was simply stated that the price was inclusive of sales tax. No strait jacket formula or method of proof can be laid down, as to how the assessee can show that price charged included ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
