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2008 (9) TMI 903 - HC - VAT and Sales TaxWhether no entry tax is payable on the purchase of diaphragm? - Held that:- We do agree with the learned counsel for the revisionist to the extent that customs duty is a kind of indirect tax like the Central excise and it can be charged by the seller from the purchaser. But, in the case of customs duty, there can be two modes of making the payment. Supposing an item imported from abroad is purchased from a dealer in India, the Indian dealer has a right to add customs duty paid by him to the price of the goods, and same can be charged from the subsequent purchaser. Inclusion of such duty by the seller would make the purchase price higher than the purchase price paid by the dealer directly from the seller outside India and such purchaser for importing will have to make payment of customs duty himself. In a later case as per the spirit of definition of "purchase price" given in clause (gg) the customs duty or other charges paid by the purchaser separately (not charged by the seller) does not to form part of the purchase price. That being so, we do not find any error of law committed by the Tribunal in holding that the A.O. and the first appellate authority have erred in law by adding the customs duty paid by the dealer (which the seller has not charged) in calculating the value of the goods imported by the dealer. Thus the revision filed by the Revenue is liable to be dismissed.
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