1992 (6) TMI 175

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..... ant to direction, the Tribunal has stated the case for the opinion of this Court. 2.. Background facts as depicted in the statement of facts are as follows: The dealer carries on business in motor tyres and tubes. For the assessment year 1975-76, assessment was completed by the Sales Tax Officer, Cuttack I, East Circle, Cuttack (hereinafter referred to as "the assessing officer"), raising a demand of Rs. 45,009 on two counts. The aspect with which we are concerned relates to levy of tax on the estimated value of tyres returned and replaced by new ones. The assessing officer noticed that where the assessee replaced new tyres against the defective tyres, deduction in price was given. The assessing officer gave an illustration. He took the .....

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..... stances of the case, the Sales Tax Tribunal is correct to hold that the dealer-opponent is not liable to pay tax on value of the tyre paid in the form of a used one and cash on account of replacement of defective tyres? 2.. Whether, on the facts and in the circumstances of the case, the conclusion of the Sales Tax Tribunal does not directly offend the provisions of explanation to section 2(i) of the Orissa Sales Tax Act, 1947 read with rule 4-A of the Orissa Sales Tax Rules, 1947 and is therefore against the law?" 3.. The Tribunal was of the view that the questions are not referable. So far as the second question is concerned the Tribunal was of the view that the same did not arise out of the order of the Tribunal and therefore, questio .....

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..... pay sales tax on the amount actually charged from the customer. There is no occasion to require the dealer to pay tax on an amount which is not charged from the customer as sale price, while replacing the tyre by way of exchange. No deduction is made from any sales tax charged on the entire sale price of the initial transaction. Therefore, the first appellate authority and the Tribunal were justified in holding that the dealer was not required to pay any extra tax in addition to what has been charged on the price of the replaced tyres. A similar view was taken by the Rajasthan High Court in the case of Commercial Taxes Officer v. Ceat Tyres of India [1988] 68 STC 53. It was not the case of the Revenue that the customer paid any value of tyr .....

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