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2020 (1) TMI 937 - HC - VAT and Sales TaxTaxability - freight charges - Reassessment of tax payable - Chhattisgarh Vanijyik Kar Adhiniyam, 1994 - whether the freight charges do not form part of the "sale price" defined under section 2(u) of the Act, 1994? - change of opinion. Whether the freight charges do not form part of the "sale price" defined under section 2(u) of the Act, 1994 and hence not taxable? - HELD THAT:- It is clear point blank that the sale was to be completed only on effecting the door delivery in the premises of the purchaser/BSP and that the payment of consideration was to be based on the weight taken at the premises of the purchaser and never before. As such, the freight paid/agreed to be paid was to form part of the "sale price" defined under section 2(u) of the Act, 1994 and in turn, it will have a bearing in the turnover defined under section 2(w) of the Act, 1994. Whether "mere change of opinion" of the assessing officer is not a ground to initiate reassessment proceedings in terms of section 28 of the Act, 1994? - HELD THAT:- The nature of contentions raised by the appellants/assessees in these cases. It is stated that all the materials were very much available with the adjudicating authority at the time of original assessment itself and that there was no instance of any suppression or non-disclosure of the full materials necessary for the assessment by virtue of which no reassessment proceeding could have been initiated, pursued or finalized by the adjudicating officer. However, based on the observation that the question still would be whether, in the present case, the Assessing Authority was satisfied or not, a decision was rendered as contained in paragraphs 30 and 31 holding that it was not so, and hence decided against the Revenue. When all any tax is to be paid on the freight charges as well, by virtue of the specific terms agreed between the appellants/suppliers/ dealers and the respondent-Bhilai Steel Plant (BSP)/buyer, it has to be shifted to the shoulders by the respondent-BSP or not? - HELD THAT:- The question whether freight was forming part of the sale price was never subjected, considered or any opinion was expressed in this regard by the adjudicating officer in the first round of the proceedings. This escape of assessment was found by the Audit Department, which was taken as a piece of "information" by the adjudicating officer, who on application of mind, held that there was "reason to believe" that it had escaped assessment ; in turn leading to the proceedings under section 28 of the Act, 1994. Thus, the order passed by the adjudicating officer, which has become final, based on the interference declined by the statutory authorities. Appeal dismissed.
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