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TMI Blog1993 (3) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of law arising out of the order: "Whether, on the facts and in the circumstances of the case, the Sales Tax Tribunal was justified in upholding the inclusion of the amount paid as cess in the gross and taxable turnovers and consequential levy of tax?" 2.. Dealer carries a business of supply of minerals in course inter-State trade from the mines leased out to it. For the year 1978-79, the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the amount received or receivable as consideration by agreement does not reflect the correct sale price, materials were necessary to be collected by the Sales Tax Officer including the agreement with the purchaser. Cost of production of ore should have been gone into to find out the rate at which normally a person carrying a business would be willing to sell. Prevailing market rate also ought to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold the goods at a loss. Taxing authorities were required to take into consideration real business and what they would have done as a businessman. 4.. Coming to question of cess, the same is not paid to the State Government as a condition for sale. Anything paid as directly connected to sale is included in sale price. Cess is not such payment. It is paid as a condition for extracting ore from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale price has been agreed upon by adopting a subterfuge and the price at which goods are sold is not the actual consideration received or receivable by the seller from the purchaser, it cannot be said that cess is a part of the sale price merely because it has been paid earlier to the sale. If the assessing authorities were suspicious about the agreement between the parties, they could have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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