9911796707
TMI Blog1983 (10) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is that the Tribunal erred in allowing him depreciation at 25% as against 30% to which the assessee was entitled. 3. The assessee had sold motor vehicles on hire purchase. The High Court in the case of Commissioner of Sales Tax v. M/s. Auto Sales, 1980 UPTC 383 held that there was no statutory provision dealing with the depreciation and the Tribunal could not be said to be in error in appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s tax from his customers in pursuance of the provisions of clause (b) of sub-section (2) of Section 8-A of the U.P. Sales Tax Act, which runs as follows a Where sales tax is payable on any turnover by the dealer (including a commission agent or any of the persons mentioned in the Explanation to clause (c) of Section 2 registered under this Act, such a dealer may recover an amount equivalent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be included. Explanation I to clause (i) of Section 2 of the Act run as follows : Explanation I. - Any amount realised by the dealer as sales or purchase tax due or purporting to be due in respect of sales or pur-ghase of goods shall be deemed to be included in the turnover. 10. Sri Bharatji Agrawal appearing on behalf of the assessee has contended that Explanation I does not widen the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal Chief Standing Counsel appearing on behalf of the Department contends that once the amount of sales tax recovered by the assessee is included in the turnover of the assessee than unless the amount is an exempted amount or it can be allowed as deduction under Rule 44, it has to be included in the assessee's taxable turnover. 14. In this case, it is clear that the purpose of Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional Chief Standing Counsel that it is only the deductions permissible under Rule 44 which can be made from the turnover of an assessee. 18. In the rusult, the revision is allowed, and the order of the Tribunal is modified to the extent that the assessees will be entitled to depreciation on the sales of motor vehicles at 30% instead of 25% allowed by the Tribunal. It is further held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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