TMI Blog1992 (4) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the assessee is effecting sale of the refrigerators to its two sister concerns and in respect of the bills issued to them, four-year service warranty charges at the rate of Rs. 300 per refrigerator have been collected. The said amount was not shown as part of the sale price. It was found that only one-year service warranty was given to the customers and there is no reference of four-year warranty. The assessing authority also came to the conclusion that the said amount is not optional and has been collected from all dealers. It was further found that as a matter of fact the assessee has not produced copy of any contract nor it has been informed as to how many refrigerators have been received for repair and no service or repair is u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ither to take a four-year warranty by paying warranty charges therefor or not. In these circumstances, the Tribunal held that so far as warranty charges for one-year warranty are concerned, they are includible. But the warranty charges for fouryear warranty are not includible. We think the Tribunal was right in holding so. It is clear that so far as four-year warranty is concerned, it is a distinct and separate agreement or contract, as it may be called. The four-year warranty agreement is distinct from the sale agreement. The sale of refrigerators is not dependent upon taking four-year warranty. The Tribunal was, therefore, right in saying that the warranty charges relating to four-year warranty are not includible in the turnover." The T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India Ltd. [1988] 69 STC 427, wherein it was held in the case of the assessee itself that four-year warranty charges was optional and was entered into later on. This was clearly after-sale facility, which was not to be included in the assessable value. I have considered over the matter. In the case of Commercial Taxes Officer v. Weston Electroniks Ltd. S.B. Sales Tax Revision No. 164 of 1988 decided on November 26, 1991*, this Court has held as under: "The definition of sale price as provided under section 2(p) of the Rajasthan Sales Tax Act, 1954, clearly envisages that only that amount which is paid or is payable to a dealer as consideration for sale of goods will be included in the sale price. This definition has further been extend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of warranty were voluntary in nature and have separately been charged then it will not form the part of the sale price. The assessee has neither produced the books of account, nor the information required was furnished before the assessing authority and the Tribunal has proceeded only on the basis of one bill. It would be proper to send the matter back to the Commercial Taxes Officer for examination whether there was separate price for the sale of the commodity with warranty and without warranty or it was one price as contended by Mr. Bafna in all cases and if it is found that the price was one whether the warranty is taken or not, then no benefit can be availed by the assessee. But if the amounts charged are separate for the value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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