1999 (5) TMI 606

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..... e tax realised by the revisionist from its customers is includable in its turnover. The dealer's system of preparing the invoices has been that it mentions a gross price for the roller bearings sold by it and trade tax/sales tax is not shown as a component of the price but the amount of sales tax chargeable does find mention in the invoice. The revision also maintains a 'sales day book' in which also the amount of sales tax which forms part of the price realised from the dealer is separately mentioned. For example, the copy of the invoice at page 66 of the paper book mentions the rate of various types of roller bearings as inclusive of trade tax and the gross amount of the bill has been shown as ₹ 3,09,405.72 P. out of whi .....

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..... xplanation II. - Subject to such conditions and restrictions, if any, as may be prescribed in this behalf (i) the amount for which goods are sold or purchased shall include the price of the packing material in which they are packed and any sums charged for anything done by the dealer in respect of the goods sold, at the time of or before the delivery thereof, other than cost of freight or delivery or cost of installation or the amount realised as trade tax on sale or purchase of goods, when such cost or amount is separately charged; (ii) not relevant; (iii) not relevant; (iv) not relevant; 5. The dealer's contention is that in order to maintain the uniform price throughout India of its product, the deale .....

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..... held that the dealer should be taken to have substantially complied with the conditions set out in the executive instructions of the Board of Revenue which provided that if sales tax collected was separately shown, the dealer should be entitled to the exclusion of that amount from the taxable turnover. No authority to the contrary has been cited by the learned Standing Counsel who placed reliance on the definition of the turnover itself and stressed that the amount of trade tax has not been separately charged. 8. We have to take a rational view of the matter and have to keep in mind the method of accounting and the method of preparing purchase vouchers by the dealer. In the bills, there is a clear indication that the sales tax is leviab .....

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