TMI Blog2014 (1) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment years 2005-06 to 2009-10 the petitioner regularly filed returns on the turnover and remitted the tax after claiming permissible deductions. Even on the service rendered by the petitioner the petitioner company filed returns and paid service tax as applicable under the Finance Act of 1994. 3. In the year 2010 respondent No. 1 inspected the business premises of the petitioner and issued a proposition notice dated 29-12-2010 for the assessment years 2005-06, 2006-07 and 2007-08 proposing various disallowances and levy of Value Added Tax on various issues. The main disallowance in the proposition notice relates to installation charges and transportation charges. The petitioner submitted reply on 10-01-2011 inter alia contendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s specifically stated that the prices are ex-showroom prices and delivery will be made only on the request of the customer at their costs, risk and responsibility. Therefore the installation charges and transport charges are exclusive of the sale price. After the sale of goods at the show room the petitioner company work as agents of buyers for the purpose of installation and transportation. These installation charges and transportation charges' are collected separately and the same do not form part of sale price of goods. For the service rendered by the petitioner company they have collected the service charges and as per the Finance Act of 1994 service tax is paid as is applicable. No arguments are addressed on the question of legalit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) 7. Heard arguments on both the side and perused the entire writ papers. On the basis of pleadings and arguments the following point will arise for my consideration: Whether the installation charges and transport charges are part and parcel of sale price in the instant case? 8. Section 2(34) of the KVAT Act defines what is Taxable turnover . Section 2(35) defines Total turnover and Section 2(36) defines Turnover . For the purpose of this case, it is necessary to extract Section 2(36) of the KVAT Act and the same reads as under: Turnover means the aggregate amount for which goods are sold or distributed or delivered or otherwise disposed of in any of the ways referred to in clause (29) by a dealer, either dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the goods are sold. It is in this background it is necessary to examine the fact situation in the present case. 10. 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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