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2008 (11) TMI 629 - HC - VAT and Sales TaxWhether the assessing authority was justified in imposing additional sales tax on the basis of assessable value of the commodity 'hair oil' sold by the assessee-manufacturer to the distributor M/s. Bajaj Sevashram Limited computed as per section 4 of the Central Excise Act, 1944 irrespective of actual sale consideration charged by the assessee for sale of the said commodity? Held that:- The assessing authority could not impose any additional tax in the hands of the respondent-assessee on the basis of hypothetical price or sale consideration assuming it to be 50 per cent of the MRP which is the assessable value as computed for the purpose of the Central Excise Act, 1944. There appears to be nothing brought on record by the assessing authority to prove the case of under-billing or charging of anything beyond the disclosed sale consideration in its returns or invoices. It is doubtless that the burden of proof in this regard lies upon the Revenue. Even if the difference between MRP and the sale consideration shown by the assessee may appear to be huge, it can at best give rise to the initiation of proceedings which the assessing authority may initiate for discharging the aforesaid burden of proof as it is a question of fact whether the assessee has charged something extra beyond the disclosed sale consideration or not. Ex hypothesi sale consideration cannot be increased to assessable value as computed under section 4 of the Central Excise Act for the purpose of levy of sales tax. Thus the appellate authorities below cannot be said to have committed any error in setting aside imposition of additional tax upon the respondent-assessee. Revision petitions filed by the Revenue dismissed.
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