9911796707
TMI Blog2001 (7) TMI 1254X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties are: Assessee is engaged in the mining and sale of ore and other minerals. Assessment for the period April 1, 1996 to March 31, 1997, was concluded by the assessing officer on March 12, 1999. Assessing authority included in the turnover the sum of Rs. 1,13,956 collected as royalty and remitted to the Government and the loading charges of Rs. 19,190 for the purpose of levying tax under the Act. Aggrieved against the inclusion of the aforesaid amounts in the total turnover, the assessee filed the appeal before the Joint Commissioner of Commercial Taxes (Appeals). The first appellate authority dismissed the appeal holding that the royalty was a price paid to Mines and Geological Department of Government of Karnataka by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is not good law. It was argued that for coming to this conclusion, the Supreme Court had relied upon its earlier decision in the case of State of Madhya Pradesh v. Orient Paper Mills Ltd. [1977] 40 STC 603, whereas the said decision had been overruled by a larger Bench of the Supreme Court in the case of State of Orissa v. Titaghur Paper Mills Co. Ltd. [1985] 60 STC 213. It is submitted that perhaps the judgment of the Supreme Court in Titaghur Paper Mills Co. Ltd.'s case [1985] 60 STC 213 was not brought to the notice of their Lordships of the Supreme Court hearing the Cooch Behar Contractors' Association's case [1996] 103 STC 477. 5.. After going through the judgments cited above, we do not find much substance in this submission. Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue and was left open to be decided in the facts and circumstances of each case. The Tribunal had left open the point by observing: "Learned counsel for the applicants did not submit that such inclusion is in any way bad or unconstitutional. Expenses incurred on account of labour simpliciter surely cannot form a part of the contractual transfer price, simply because it is not a value of or valuable consideration for any "goods", unless such expense amounts to cost of freight or delivery for carrying the goods to the worksite. It will depend on the circumstances in which or the purpose for which labour was employed. On this question, we hold accordingly. Each case shall have to be judged on its own merits and on its peculiar facts. .... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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