TMI Blog2001 (12) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... inition of "turnover" is in relation to the dealer who receives the consideration and the source from which that consideration is received is not required to be gone into, so long as the receipt of the consideration for the sale is clear and is established. 2.. The assessing authority, having sought to tax the petitioner, who is a manufacturer of fertiliser but whose product potash, is not subject to the Fertiliser (Control) Order so far as the pricing is concerned, and who had sold the product in terms of an administered scheme framed by the Central Government which provided for payment of an amount which was described as a concession in the scheme formulated by the Central Government to the manufacturer, subject to the manufacturer ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al purposes, it was observed by the court at para 13 that "the subsidy so given is undoubtedly to see that the ultimate consumer gets fertiliser at a reasonable price and the manufacturer is not unduly burdened by the lower fixation of the price of fertiliser. The payment which is so made by the Government to a manufacturer cannot be regarded as a discharge of any liability or obligation by the Government towards the purchaser of fertiliser. The two payments received by the manufacturer, namely, the subsidy and the price fixed under the Fertiliser (Control) Order are independent of each other. Subsidy does not form part of the bargain between the manufacturer and the purchaser of fertiliser". 5.. The court after referring to the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale price on which tax is payable." At para 20 of the judgment, reference was made to the case of E.I.D. Parry [2000] 117 STC 457 (SC). Thereafter, the court emphasised the fact that there was no agreement in the case before it that any part of the price would be paid by the Government and, therefore, the amount received by the manufacturer from the Government would not form part of the sale price. The court observed that "In the present case, however, there is no agreement between the appellant and the purchasers of fertiliser for payment of any amount by the purchasers to the manufacturer in excess of the price fixed under the Fertiliser (Control) Order. Subsidy is paid to the appellant not by or on behalf of the purchasers, but is pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derstood as only the amount paid or payable by the buyer which would also include the amounts payable by others on behalf of such buyer, but would exclude amounts receivable by the seller from others under a scheme to which the buyer is not a party. 10.. We must, therefore, hold that the order of the Tribunal holding that the amount of concession received by the manufacturers from the Government under the administered scheme forms part of the sale consideration, is not in accordance with the law declared by the apex Court. The impugned order of the Tribunal is set aside, and the original petition filed by the petitioner before the Taxation Tribunal shall stand allowed. 11.. The learned counsel for the petitioner points out that the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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