2008 (8) TMI 869 - HC - VAT and Sales Tax

Whether the Trade Tax Tribunal was legally justified to quash the tax imposed on the sale of ₹ 6,58,316 without recording no reason for the same?

Whether the Trade Tax Tribunal was legally justified to exempt the amount of freight and handling charges?

Held that:- Coming to the facts of the case, the authorities below have excluded ₹ 68,69,873 from the sale price which were charged towards the freight and handling charges separately. However, it was found that, as a matter of fact, in the bills the dealer-opposite party has charged much more amount than the amount spent by it towards the freight and handling charges. This excess amount was considered by the assessing officer as the charges made by the dealer-opposite party under the other heads and shall form part of the sale price. Without setting aside the finding recorded by the two authorities below to it, the Tribunal assumed that the said amount of ₹ 6,58,316 was towards the labour charges/insurance. The order of the Tribunal is far from satisfactory as it does not contain any reason as to whether the freight charged by the dealer-opposite party amounting to ₹ 6,58,316 was charged towards the labour charges/insurance charges. Revision allowed.