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2006 (7) TMI 17 - SC - VAT and Sales TaxWhether section 4A of the Rajasthan Sales Tax Act, 1994 as introduced by the State Finance Act, 2004 was not legally sustainable to the extent that tax on first point sale of drugs, medicines or any formulation or for that matter any other commodity by a manufacturer/wholesaler/distributor to retailer where "Minimum Retail Price" is published on package, measure to which rate of tax is to be applied cannot be with reference to such published MRP which is neither charged nor chargeable by the wholesaler from the retailer whether the tax is charged on sales or on purchase by the parties to sale under section 4A and the concerned notification in this regard? Held that:- The judgment of the High Court does not warrant any interference and the appeal is dismissed. However, it is made clear that if the tax component has been passed on to the subsequent purchases claim for refund shall not be entertained. But where it has not been so passed on and has been deposited with the authorities, the same shall be adjusted against future demands, if any.
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