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TMI Blog2012 (7) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... Senior Counsel with Ms. Tanvi Sahai For the Respondent : J.K. Ranka Senior Counsel with N.K. Baid, ALOK SHARMA J.-In both the petitions, the challenge is to the orders of Rajasthan Tax Board both passed on December 5, 2002 holding that optional service/warranty charges were not included in the price of the goods sold (refrigerators) as they do not constitute a part of the sale price. Holding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale price and visited with tax or at the minimum the matter ought to have been remanded to the assessing authority for determining the issue of fact. Mr. J.K. Ranka appearing on behalf of the assessing authority would submit that from the reading of the orders of the assessing authority, appellate authority and also the Rajasthan Tax Board, it is evident that issue of the nature of optional servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment of this court in the case of Commercial Taxes Officer v. Weston Electroniks Ltd. reported in [1992] 87 STC 522 (Raj), which enunciates the principle that payment made by the customer to dealers at the time of sale of goods when made by exercising an option to avail of service charge/warranty did not constitute the sale price of the goods sold and could not be reckoned for determining sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 10 per cent of the customers did not do so. The Tax Board has held that the charges levied on account of after sales service/warranty were optional. In my considered opinion, there was enough material before the Tax Board to hold that the charge levied by the assessee towards service/ warranty charges at the time of the sale was not universal but optional. Following this finding the legal cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed for non-prosecution by this court as early as 2008, of which in one revision petition a restoration application has been filed and is still pending. In respect of the other two revisions, the orders of the Tax Board have attained finality. It is thus, evident that the Department itself has accepted the legal positions enunciated by the Rajasthan Tax Board in at least two other connected a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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