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2014 (9) TMI 467 - HC - VAT and Sales TaxTaxability of transportation charges - Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that the amount of “transportation charges” from part of the turnover of sale assessable to tax under the Gujarat Sales Tax Act, 1969, for the assessment years 1977-78, 1978-79 and 1979-80 - Held that:- As per the definition of 'sale price', defined under Section 2(29) of the Act, ‘Sale Price’ include amount of consideration paid or payable to dealer for any sale made including any sum charged for anything done by the dealer in respect of the goods at the time or before the sell thereof. It is submitted that, therefore, in the definition of 'sale price' under Section 2 (29)of the Act, there is no specific inclusion of freight and or transport charges. Shri. Kaji, learned Advocate, has tried to distinguish the decision of the Hon’ble Supreme Court in “HINDUSTAN SUGAR MILLS LTD.” (1978 (8) TMI 186 - SUPREME COURT OF INDIA) and has relied upon another decision of the Hon’ble Supreme Court in “HYDERABAD ASBESTOS CEMENT PRODUCTS LTD. VS. STATE OF ANDRA PRADESH”, (1969 (2) TMI 131 - SUPREME COURT OF INDIA). Any amount received and or recovered by the applicant-assessee may be even transportation charges or any other amount received is required to be included in the ‘Sale Price’. Identical question came to be considered by the Hon’ble Supreme Court in the case of “HINDUSTAN SUGAR MILLS LTD.” (Supra). While considering, some what, similar provisions in the Rajasthan Sales Tax Act, the Hon’ble Supreme Court has observed and held that the amount of freight formed part of the ‘sale price’ within the meaning of the first part of the definition of the term in section 2(p) of the Rajasthan Sales Tax Act and section 2(h) of the Central Act, so includable in the turnover of the assessee. when the applicant admittedly received the amount of transportation charges through pipeline of crude oil that was sold by the assessee to its sole purchaser, i.e. IOC, from IOC the same was required to be included in the ‘Sale Price’ and is rightly included in the ‘Sale Price’. It is, therefore, rightly held that the applicant is liable to pay the tax on the same. Now, so far as the interest charged under Section 47(4A) of the Act on the ad hoc payment made by the applicant-assessee on the ground of subsequent increase in price by the Government of India with effect from 14.09.1981, i.e. the question No.2, is concerned, it is required to be noted that and it cannot be disputed that, as such, the liability to pay the Sales Tax and or eventuality to pay the Sales Tax would be at the time of sell. Therefore, the liability to pay difference in gas price as per the Central Government revised prices on 14.09.1981, would arise from that date i.e. 14.09.1981, and that the dealer was liable to pay the tax on the revised prices on and with effect from 14.09.1981. Under the circumstances, the petitioner is rightly charged with the interest on the revised price / ad hoc amount of gas with effect from 14.09.1981. - Decided in favor of revenue.
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