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2008 (3) TMI 468 - SC - VAT and Sales TaxWhether amortisation cost of toolings was includible in the sale price of auto components as in the case of excise duty under the Central Excise Act, 1944? Whether the department was right in equating sales tax to excise duty? Held that:- Appeal allowed. In the present case, moulds were manufactured by the buyer/customer so that the auto components could be manufactured by the appellant in terms of the specifications given by the buyer. Therefore, the cost of manufacture of these moulds was incurred by the buyer/customer and not by the appellant. The High Court had erred in holding that the amortisation cost calculated in terms of rule 6 of the Excise Valuation Rules, 2000 is includible in the sale price of auto components sold by the appellant herein to its customer, M/s. Honda Siel Cars India Ltd.
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