TMI Blog1991 (4) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... he short question that arises for consideration, in this tax revision case is whether the dealer is entitled to deduction of sales tax collected. The assessing authority as well as the first appellate authority held that the dealer collected a lump sum amount and the tax collected is not shown separately in the sale bills. The deduction pleaded was refused. The entire amount collected as per the sale bills was considered as the value of the goods and brought to tax. In second appeal, the Sales Tax Appellate Tribunal noticed the sale bills issued by the dealer, wherein it is stated, at the bottom, specifically as follows: "including sales tax". The Tribunal also adverted to the ledger produced by the dealer, wherein the dealer has bifurcated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... General Sales Tax Act, which permits a registered dealer to pass on the tax leviable on the sale of any goods to the customer. The basic concept of the levy being an indirect tax and the facility to pass on the tax is afforded by the statute, the only purpose served by rule 9(1) of the Kerala General Sales Tax Rules is to exclude the sales tax collected from the taxable turnover. In this connection, the decision of the Supreme Court in Delhi Cloth and General Mills Co. Ltd. v. Commissioner of Sales Tax [1971] 28 STC 331 is relevant. 3.. The learned Government Pleader, Mr. Divakaran Pillai, contended that there is no literal compliance of rule 9(1), in that the amount of sales tax collected by the dealer is not shown separately in the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pression "collected as such". A further question was also posed thus: "Does it mean that in every sale memo, sales tax realised must be shown separately from the price realised as the value of the goods sold, or, does it mean that even though it is not so indicated in the sale memo, the identity of the sales tax realised on the sale value of the goods can still be ascertained?" The court observed thus: "Is the amount shown in the sale memo only the value of the goods sold, or, whether the amount shown includes partly the value of the goods sold and partly sales tax realised on the sale of goods? The idea underlying the use of the expression "collected as such" obviously seems to be that if there is evidence to indicate that part of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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