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2008 (7) TMI 856 - HC - VAT and Sales TaxWhether the Appellate Tribunal was justified in directing the assessing authority to allow deductions towards mortality and weight loss during the transportation of chicken, while quantifying the sales tax liability under the provisions of the Kerala General Sales Tax Act, 1963 read with the Kerala General Sales Tax Rules, 1963? Held that:- Sales tax is payable on the real price received or receivable by the dealer in respect of a sale. A dealer is entitled to frame his price structure in a manner conducive to the type of his business. He may base his price structure so as to take care of weight loss and mortality of chicken. But when it comes to taxation under the KGST Act, whatever amounts agreed to be paid to the seller from the buyer should be considered as consideration for the sale and requires to be subjected to tax, after giving those deductions that are provided under the Act and the Rules framed thereunder and no other deductions can be allowed while computing the sales tax liability. In view of the above discussion, we cannot sustain the findings and conclusions reached by the appellate authority and the Appellate Tribunal. Accordingly, revision petitions filed by the Revenue require to be allowed and they are allowed. The questions of law framed by the Revenue are answered in favour of the Revenue and against the assessees-dealers.
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