M/s Haveli Ram Diwan Chand Vs. Commissioner, Sales Tax, Lucknow
EmailAppeal: Civil Appeal Nos. 1551-53(NT) of 1988.
(Arising out of SLP (C) Nos. 7368-70/85)
(Arising out of SLP (C) Nos. 7368-70/85)
Petitioner: M/s Haveli Ram Diwan Chand
Respondent: Commissioner, Sales Tax, Lucknow
Apeal: Civil Appeal Nos. 1551-53(NT) of 1988.
(Arising out of SLP (C) Nos. 7368-70/85)
(Arising out of SLP (C) Nos. 7368-70/85)
Judges: RANGANATH MISRA & MURARI MOHON DUTT,JJ.
Date of Judgment: Apr 21, 1988
Head Note:
U.P.SALES TAX ACT,1948:
Section 2(gg) – ‘Purchase Price’ – Whether charges locally called Tulai is a part of “purchase price” liable to tax? – Held that Tulai shall be a part of delivery charges and in case it has been separately charged in respect of each of the sale transactions entered into between the customers and the assessee the same would be entitled to exemption from tax – Otherwise it would come within the definition of “purchase price” and “taxable turnover” – Matter remitted to the High Court for disposal afresh.
JUDGEMENT:
O R D E R
1. Special Leave granted.
2. Section 2(gg) of the U.P. Sales Tax Act defines “Purchase Price” to mean:
“the amount of valuable consideration paid or payable by a person for the purchase of any goods, less any sum allowed by the seller as cash discount according to trade practice, and shall include any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of freight or delivery or the cost of installation when such cost is separately charged.”
3. The point in dispute in these appeals is as to whether charges locally called Tulai is a part of “purchase price” liable to tax. The assessee’s contention has been that he has separately charged Tulai in respect of each of the transactions. According to the Revenue the term Tulai stands at par with Dhami and is assessable to sales tax being a part of purchase price.
4. After quoting the explanation appearing under section 8(1) of the Act, the High Court has stated in the impugned order “the assessee has maintained again Dhami as entered in the book, but this was not included in the taxable turnover. Since sales tax was admittedly paid due on the taxable turnover, the assessee was not liable in the Act to pay tax on it.” The point that was to be examined and decided appears to have been taken as a statement of fact. In view of the position that the dealer did not accept liability and contended that Tulai was not a part of purchase price, he had not included it in the taxable turnover. What was necessary to be found was whether Tulai formed part of the purchase price, so as to be included in the taxable turnover. We do not find that there has been any decision in this aspect.
5. We clarify the position that Tulai shall be a part of delivery charges and in case it has been separately charged in respect of each of the sale transactions entered into between the customers and the assessee the same would be entitled to exemption from tax. Otherwise it would come within the definition of “purchase price” and “taxable turnover”. This being the legal position the matter has to be examined keeping this in view. We vacate the judgment of the High Court and remit the matter to it for a fresh disposal. The question of interest has not been examined by us as it is related to the question of Tulai being exigible to tax or not. Mr. Manchanda for the department wants us to request the High Court to dispose of this case quickly. The High Court shall dispose of this matter within three months from the receipt of the order. The appeal is accordingly disposed of. No costs.
1. Special Leave granted.
2. Section 2(gg) of the U.P. Sales Tax Act defines “Purchase Price” to mean:
“the amount of valuable consideration paid or payable by a person for the purchase of any goods, less any sum allowed by the seller as cash discount according to trade practice, and shall include any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of freight or delivery or the cost of installation when such cost is separately charged.”
3. The point in dispute in these appeals is as to whether charges locally called Tulai is a part of “purchase price” liable to tax. The assessee’s contention has been that he has separately charged Tulai in respect of each of the transactions. According to the Revenue the term Tulai stands at par with Dhami and is assessable to sales tax being a part of purchase price.
4. After quoting the explanation appearing under section 8(1) of the Act, the High Court has stated in the impugned order “the assessee has maintained again Dhami as entered in the book, but this was not included in the taxable turnover. Since sales tax was admittedly paid due on the taxable turnover, the assessee was not liable in the Act to pay tax on it.” The point that was to be examined and decided appears to have been taken as a statement of fact. In view of the position that the dealer did not accept liability and contended that Tulai was not a part of purchase price, he had not included it in the taxable turnover. What was necessary to be found was whether Tulai formed part of the purchase price, so as to be included in the taxable turnover. We do not find that there has been any decision in this aspect.
5. We clarify the position that Tulai shall be a part of delivery charges and in case it has been separately charged in respect of each of the sale transactions entered into between the customers and the assessee the same would be entitled to exemption from tax. Otherwise it would come within the definition of “purchase price” and “taxable turnover”. This being the legal position the matter has to be examined keeping this in view. We vacate the judgment of the High Court and remit the matter to it for a fresh disposal. The question of interest has not been examined by us as it is related to the question of Tulai being exigible to tax or not. Mr. Manchanda for the department wants us to request the High Court to dispose of this case quickly. The High Court shall dispose of this matter within three months from the receipt of the order. The appeal is accordingly disposed of. No costs.
