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TMI Blog1991 (7) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... the Sales Tax Appellate Tribunal in respect of all the 12 years were taken together and a common order was passed. Before us, in revision, Mr. V. Ramachandran, learned senior counsel for the petitioner, raises only the question of ascertaining the turnover in respect of hire-purchase sales and as to whether interest, service charges should be deducted from the turnover or not. We are, therefore, passing a common order in all the tax cases. 2.. Taking the first Tax Case (Revision) No. 464 of 1982, we will set out the facts for a proper understanding of the questions raised before us. This tax case relates to the assessment year 1966-67. The assessee had declared a total and taxable turnover of Rs. 62,27,515.17 and Rs. 28,54,428.83 respectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse of import; 2.. That, in any event, the sales are liable to be taxed only as hire-purchase sales and therefore taxable on the basis of the value of the goods at the time of making the last payment of instalment. The Appellate Assistant Commissioner has also found that the assessee was not eligible for exemption, and on the second question relating to the ascertainment of the turnover, held that the price of the goods had already been settled and it was being paid in instalments. He held that the sale value is the aggregate amount of all the instalments. He proceeded to say that the assessees were instructed to file the details of the sale of goods effected on hire-purchase and the dates of last payment of instalments for each year. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to be paid in instalments should be treated as the sale price or consideration for the sales." The Tribunal therefore, held that the entire hire-purchase amount agreed to be paid in instalments should be treated as consideration for the sale. Therefore, all the appeals except for the assessment years 1974-75 and 1975-76 were dismissed. So far as the last two assessment years, namely, 1974-75 and 1975-76 were concerned, the Government Notification No. 422, Commercial Taxes and Religious Endowments Department dated October 10, 1974, directing that no tax shall be payable under the CST Act by the assessee in respect of sale of machineries imported by it through the Madras Port and sold outside the State of Tamil Nadu in the course of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the intending purchaser after fulfilling the terms of the agreement. When all the terms of the agreement are satisfied and the option is exercised a sale takes place and till then the goods had been only hired. For the purpose of our case Mr. V. Ramachandran relies on the discussion based on the "quantum of sale price which is to be the basis of taxation under the Act". Learned counsel relies on the following observations: "The value must be something less than the original price, which in the example mentioned by us above was Rs. 5,000. In order to arrive at the value at the time of the second sale to the hirer, the sales tax authorities should take into consideration the depreciation of the vehicle and such other matters as may be relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sence of the details for the sales, the assessing officer had to determine the turnover reported as per accounts as relating to the sales pertaining to the years in which they were completed. Therefore, the assessment on the turnovers determined by the officer in regard to these sales is proper and is confirmed." We have already extracted the finding of the Tribunal and the finding is that for the purpose of computing the turnover the total of the hire instalment stipulated in the agreement should be treated as sale price or as consideration for the sale. In the light of these findings, if we now examine the rival submissions, we are inclined to hold that the total value recoverable from the purchaser would be the sale price as shown in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epreciation before the authorities. In Marikar (Motors) Limited v. Sales Tax Officer [1973] 31 STC 201 while applying Supreme Court's case cited supra the Kerala High Court observed as follows: "It is also clear from the decision of the Supreme Court cited above, that the amount of depreciation has to be decided on a reasonable basis. That has to be done by the Sales Tax Officer on the basis of relevant materials. The assessee is also bound to produce relevant evidence in order to assist the Sales Tax Officer to come to a correct decision." We are clearly of the opinion that the assessees have miserably failed to establish their case before the statutory authorities. On the available materials and on the basis of the findings of the autho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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