9911796707
TMI Blog1996 (8) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to as "the Board"] dismissed by a single order five appeals of the present petitioner against a judgment dated March 29, 1988 of the Deputy Commissioner [Appeals] ["D.C. Appeals", for short] allowing by a single order five appeals of the respondent against assessment orders made by the petitioner. 2.. The applications listed at S. Nos. 1, 2 and 5 pertain respectively to the years 1984-85, 1981-82 and 1983-84 and relate to assessment orders made by the petitioner on November 20, 1987 under section 9 of the Central Sales Tax Act, 1956 ("the CST Act" for short) read with section 12 of the RST Act. Section 12 of the RST Act pertains to assessment of tax, etc., incorrectly assessed, i.e., to reopening of assessments. 3.. The applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals and the latter's judgment was upheld by the Board. 5.. We have heard the learned counsel for the parties and have carefully considered the matter in controversy with reference to the law and the facts and circumstances of this case. 6.. The point at issue is whether CST is leviable on sale price, and therefore on turnover, inclusive of Central excise duty even when the price charged from the purchaser does not include Central excise duty and the Central excise duty paid by the seller is reimbursed to the seller by the Central Government? 7.. This is the only point agitated before us. 8.. At the very outset it may be mentioned that the petitioner has adopted for the term "turnover" not the meaning assigned to it by sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of the CST Act defines "sale price" and reads: "(h) 'sale price' means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for any thing 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." 12.. A reading of the definitions of the terms "sale" and "sale price" together would show that sale price is the amount payable as consideration for the transfer of property in goods to one person, i.e., the transferor-dealer or seller by anot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facility for deemed exports it does not step into the shoes of the tax-payer or the purchaser for it to be said that the Central Government paid the Central excise duty as the petitioner appears to have reasoned. For the component of production covered by the reimbursement the Central excise duty paid in effect becomes zero and, by a simple arithmetical proposition, even if added to the sale price the additional tax liability on account of CST would also be zero. For all practical purposes, therefore, reimbursement has the same effect as exemption. 16.. As there appears to be some confusion among lower authorities on the question of "deemed exports" and the conditionalities of World Bank loans, etc., it is necessary to clarify certain con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... radesh High Court which are discussed in the paragraphs that follow. 21.. In State of A.P. v. Ranka Cables Pvt. Ltd. [1990] 78 STC 111, a Division Bench of the Andhra Pradesh High Court had before it a revision arising out of a matter in which the dealer manufactured cables and other electrical equipment and was eligible for reimbursement of Central excise duty under a "Supplementary Cash Assistance Scheme" on supplies made in India to UN organisations against payment in free foreign exchange. The Central excise duty was first added and then deducted from the bill, i.e., the bills did not include Central excise duty. The Commercial Taxes Officer had included the Central excise duty in the turnover of the dealer. The Sales Tax Appellate Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed exports". KEC were awarded the contract and as such were required to pay Central excise duty and be fully reimbursed for it by the Central Government under the Cash Compensatory Scheme. The question arose whether the Central excise duty was part of the sale price for purposes of CST, KEC moved the Commissioner of Sales Tax under the relevant provisions of the Bombay Sales Tax Act for determination. The Deputy Commissioner (Administration) determined that it was to be included in the sale price. KEC appealed to the Maharashtra Sales Tax Tribunal. The Tribunal by its judgment dated August 28, 1990 allowed the appeal and held that the Central excise duty paid by KEC, but not by NTPC and reimbursed to KEC by the Central Government whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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