TMI Blog1978 (8) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-sections (1)(b) and (2)(a)(ii) of section 7 of the Bihar Sales Tax Act, 1959?" 2.. The relevant facts are that for the period of assessment 1965-66, the dealer claimed to deduct a sum of Rs. 1,32,710 from the gross turnover in terms of section 7(1)(b) and 7(2)(a)(ii) of the Act. In support of its claim, the dealer has stated that all the sale memos issued by it indicated that the value realised under the sale memo was inclusive of sales tax. Each sale memo bore a rubber-stamp marking "including tax". The assessing officer, however, did not accept the claim for deduction holding that there was no evidence to the effect that the sales taxes had been collected as such on each sale made. The dealer then carried the matter in appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7(1)(b) and 7(2)(a)(ii) of the Act unless the amount received as sales tax had been shown as such in the sale memos issued, the claim for deduction was not permissible. Dealing with the expression "sales tax collected as such" as occurring in the said two provisions of the Act, the Tribunal observed that the literal interpretation was that "the payment of the tax should be received so characterised. In other words, even at the time of receipt of the payment, the tax amount should be received separately or clearly known". With these observations, the Tribunal thought that the order passed by the Deputy Commissioner allowing the dealer's claim of deduction of the said sum of Rs. 1,32,710 out of the gross turnover was illegal. The disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if there is evidence to indicate that part of the amount in a sale represented the sales tax, it must be said that the sales tax had been collected as such on the said transaction and it has to be allowed as a deduction in computing the taxable turnover. This Court in the case of Malpani Brothers v. State of Bihar[1974] 34 S.T.C. 234. , relying on a decision of the Supreme Court in the case of Ashoka Marketing Ltd. v. State of Bihar[1970] 26 S.T.C. 254 (S.C.)., observed that the observations of the Supreme Court in the said case did support the contention raised on behalf of the dealer. The contention of the dealer was that he can show even otherwise, namely, from his account books, etc., that he had collected tax separately from the buyer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the revision should, therefore, have been dismissed. The Tribunal, however, allowed the revision on an interpretation, as made by it, of the expression "sales tax actually collected as such", but without applying its mind to the facts found. It cannot be gainsaid that law cannot be applied in isolation of facts. Since the facts as found by the Deputy Commissioner of Commercial Taxes which were put before the Tribunal by the learned counsel of the dealer have not been found to be unacceptable or wrong, it must be held that, on the facts and circumstances of the case, the Tribunal was not justified in holding that the deduction of Rs. 1,32,710.38 as claimed by the dealer towards sales tax realised from his customers was not an admissible dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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