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2009 (1) TMI 810 - HC - VAT and Sales TaxDisallowance of facility charges by the Tribunal - Held that - The charges which has been paid by the consumer at the place of sale would be nothing but the sale price of the said goods. Accordingly, we do not have any hesitation to come to the conclusion that there is no illegality or irregularity in respect of the order so passed by the learned Tribunal and in our considered opinion, no case has been made out by the petitioner to interfere with the order so passed by the learned Tribunal.
The Calcutta High Court judgment involves an application against an order passed by the Tribunal regarding the disallowance of "facility charges" by the authorities. The petitioner maintained a factory at Asansol and supplied industrial gases to the Indian Iron and Steel Co. Ltd. at Burnpur. The dispute centered around whether the cost of converting liquid oxygen into gaseous form at the IISCO site should be included in the sale price. The Tribunal ruled in favor of the Revenue, stating that anything done before the sale is complete should be part of the sale price. The petitioner argued that the plant and machinery were immovable goods and not subject to tax. However, the Tribunal found no apparent mistake of fact or law in its original judgment.
The petitioner's review application was rejected, and subsequent points of dispute included the disallowance of exemption from tax on facility charges and concessional tax rates against declaration forms. The petitioner contended that the facility charges were freight charges and should not be part of the sale price. However, the Tribunal concluded that the end price paid by the consumer after the transformation of liquid oxygen into gaseous form constituted the sale price. The judgment referenced a Supreme Court decision emphasizing that charges paid by the consumer at the place of sale are part of the sale price. In conclusion, the application was dismissed as the Tribunal's order was deemed legal and correct. The petitioner failed to establish a case for interference with the original judgment. Thus, the application was dismissed.
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