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TMI Blog2010 (1) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer's price which is the price at which advance tax could be collected. As we have already observed going by the current market price of varieties of imported timber for which the Commissioner has fixed floor rate price for the purpose of payment of advance tax, the price fixed cannot be said to be unreasonable or arbitrary, more so when the appellant has no case that sales are made at below the floor rate fixed by the Commissioner. Appeal dismissed. - W.A. No. 2412 of 2009 - - - Dated:- 27-1-2010 - RAMACHANDRAN NAIR C.N. AND GOPINATHAN P.S. JJ. Bobby John for the petitioner The Government Pleader for the respondents JUDGMENT Writ appeal is filed by a firm engaged in import and sale of timber in the State challengi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontended that floor rate fixed for the purpose of collection of advance tax for the various varieties of timber is arbitrary and unreasonable and has no relation to the market value. We notice from exhibit P7 that floor rate is fixed for as many as nine varieties of imported timber, some of which, namely, teak, pin coda, beachwood/ashwood, etc., are available in plenty in the market. For teak wood, the floor rate fixed is ₹ 1,800 per cft and for other varieties of timber, the price fixed ranges from ₹ 400 to ₹ 900 per cft. In other words, except for teak wood, the average floor rate of price fixed for payment of advance tax is below ₹ 740 per cft. While the appellant contends that the Commissioner has not collected a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at is, timber used for construction purposes, we are unable to accept the contention of the appellant that value fixed is high. Further, advance tax is only a provisional deposit towards tax and nothing in the Act requires the appellant or any party to pay tax except on actual sale price. The value fixed under the circular for payment of advance tax does not reflect the basis for actual liability. In fact, [2010] 27 VST 536 (Ker). tax is payable only on actual sale price and the appellant is absolutely free to claim refund of advance tax paid, if it is in excess over tax liability. If there is allegation of under-invoicing, it is for the assessing officer to establish the same in adjudication proceedings. We do not find any grievance for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be accepted as the basis for challenging the validity of circular issued by the Commissioner fixing the price because it is for the customs authorities to examine whether invoice price or the declared price for payment of duty is right. In fact the correct procedure to fix the price for timber for the purpose of collection of advance tax is to collect from the market the prevailing retail market price at a given time and reduce therefrom the dealer margins to fix the dealer's price which is the price at which advance tax could be collected. As we have already observed going by the current market price of varieties of imported timber for which the Commissioner has fixed floor rate price for the purpose of payment of advance tax, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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