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1997 (12) TMI 564 - SUPREME COURTWhether the cess payable under the provisions of the Rubber Act, 1947, will form part of the purchase turnover of the respondents under the Kerala General Sales Tax Act, 1963? Held that:- Appeal allowed. The incidence of duty is directly relatable to the production of rubber. The character of levy is not altered merely because the payment of duty is deferred till the purchase of the rubber by the manufacturer. The character of levy is on the production of the rubber and the duty paid should, therefore, be deemed to be part of the price that the producer had paid for the goods purchased. Neither a provision for deferred payment nor the liability cast on the manufacturer of rubber goods for payment of the duty to facilitate easy collection, can alter the duty as being one on the production of rubber as provided by section 12(1) of the Rubber Act and such duty even though paid later, will be a part of the price of goods purchased and would, therefore, form part of the producers turnover.
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