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2019 (12) TMI 885 - HC - VAT and Sales TaxLiability of purchase tax - inclusion of freight charges or delivery charges paid by the Sugar Mills, Assessee to the Lorry Owners for getting the sugar cane from the fields of the sugar cane growers to the factory gate in assessable value - TNGST Act - HELD THAT:- The controversy is no longer res integra as this very controversy came to be decided by a Full Bench of this court in the case of Chengalvarayan Co-operative Sugar Mills Limited v. State of Tamil Nadu [1996 (7) TMI 522 - MADRAS HIGH COURT] which came to be affirmed by the Hon'ble Supreme Court in the case of E.I.D. Parry (I) Ltd. v. Assistant Commissioner of Commercial Taxes [1999 (12) TMI 708 - SUPREME COURT] and later on followed by the Hon'ble Supreme Court in the case of Ponni Sugars (Erode) Ltd. v. Deputy Commercial Tax Officer [2005 (11) TMI 247 - SUPREME COURT] where it was held that the transport subsidy formed part of the consideration for the purchase of the sugarcane by the appellant from the sugarcane growers. There are no reason to take a different view as there is no distinction on facts in the present case and the purchase of sugar cane by the Assessee Sugar Mill during the period in question also happened in a similar way and therefore, the mere bifurcation of prices in the invoices to the extent of transport charges or plantation subsidy will not materially affect the aforesaid prevailing legal position. The Tribunal is justified in imposing the purchase tax on the Assessee Sugar Mill on the entire purchase price including the components of price for the sugar cane, plantation subsidy and transportation charges paid by the Assessee for transportation of sugar cane from the sugarcane fields to the factory premises of the Petitioner. The Tax Cases filed by Assessee fail and they are devoid of merits and they are liable to be dismissed - Appeal dismissed.
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