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2014 (1) TMI 458 - HC - VAT and Sales TaxDisallowances of installation charges and transportation charges - Levy of Value Added Tax - Held that:- Petitioner is engaged in trading of house hold articles, electrical and electronic goods etc. manufactured by other companies. Petitioners have produced the price lists issued by the manufacturers. A perusal of these price lists specify that the prices are exclusive of installation charges. Further the invoices raised by the petitioners specifies that the prices of goods are ex-showroom price. It further specifies that transfer of title in goods takes place at the place of seller. Therefore, the sale price of the goods at the ex-showroom price attracts sales tax. Subsequent to the transfer of title in the goods at the place of seller they Act as agents of customers for transportation of goods and to installation purpose. Therefore the transportation charges and the installation charges do not become the part of sale price of the goods. The invoices produced by the petitioner specifies under different heads, the sale price of the goods, the transportation charges and the installation charges. Petitioners have collected transportation charges and the installation charges from the customers under different heads in the invoices raised by them. Further it is not in dispute that the petitioners have paid service tax on these transportation charges and installation charges. Thus the petitioners have discharged their legal obligation of paying the service tax on the services rendered by them. The State Government cannot enrich by wrongly bringing the transportation charges and the installation charges as part of sale price of the goods. Therefore the impugned orders are liable to be quashed - Decided in favour of assessee.
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