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2018 (2) TMI 1548 - SC - VAT and Sales TaxRefund of tax paid on excess amount - price variation clause - rejection on the ground that there is no provision under the Act for reducing or refunding the amount of tax once the amount of tax has been paid - Section 2(39) of the Rajasthan Sales Tax Act, 1994 - Held that: - In IFB Industries Limited v. State of Kerala [2012 (3) TMI 66 - Supreme Court of India], the issue was with regard to the definition of ‘turnover’. This court held that to take the benefit of trade discount and to make it eligible for exemption, all that the assessee is required to prove was that the purchaser had paid only the sum originally charged less the discount and that this should be a regular practice in the trade. A bare reading of Section 2(39) of the Rajasthan Sales Tax Act, which defines “sale price” clearly indicates that it is the price which is either paid or payable to a dealer as consideration for the sale. The definition itself makes it clear that any sum by way of any discount or rebate according to the practice normally prevailing in the trade shall be deducted and shall not be included in the sale price. The definition of ‘turnover’ means the aggregate amount received or receivable by a dealer. In the instant case, when the orders were placed with the assessee, the price was not finalized by the MoP & NG. There was a clear cut stipulation in the purchase order that the price of ₹ 682/is only a provisional price subject to review and it was clearly understood by the parties that the final price applicable after 01.07.1999 will be the price as approved by the MoP & NG. Therefore, though the assessee may have received ₹ 682/per cylinder, it was under a legal obligation only to receive that price which was fixed by the MoP & NG - since the price of the cylinder has been reduced, the assessee cannot charge more than the price fixed, is bound to refund the excess amount collected and is therefore legally entitled to get refund of the tax paid on the excess amount. The assessee shall be refunded the amount of sales tax paid on the excess amount - assessee also entitled to interest - appeal allowed - decided in favor of appellant.
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