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TMI Blog2008 (8) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... . 75,28,189 from the customers towards the freight and handling charges and as such the dealer-opposite party has charged Rs. 6,58,316 in excess from its customers which shall part of the sale price and it was taxed accordingly. The said part of the assessment order was confirmed by the first appellate authority but has been set aside by the Tribunal in Second Appeal No. 94 of 1999 relating to the assessment year 1993-94 (Central). In the memo of revision the following questions of law have been sought to be raised: "(a) Whether the Trade Tax Tribunal was legally justified to quash the tax imposed on the sale of Rs. 6,58,316 without recording no reason for the same? (b) Whether the Trade Tax Tribunal was legally justified to exempt the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fined under the Rajasthan Sales Tax Act is in material part the same as defined under the Central Sales Tax Act. It was held therein that the definition of sale price is in two parts. The first part says that the sale price means the amount payable to a dealer as consideration for the sale of any goods less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged. Further, while dealing with the second limb of the definition clause (h) their Lordships obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the inclusive clause. Obviously, therefore, this exclusion clause can be availed of by the assessee only if the State seeks to rely on the inclusive clause for the purpose of bringing a particular amount within the definition of 'sale price'. But if the State is able to show that the particular amount falls within the first part of the definition and, is, therefore, part of the 'sale price', the exclusion clause cannot avail the assessee to take the amount in question out of the definition of 'sale price'. In this view the amount of freight forms part of the 'sale price' within the meaning of the first part of the definition and it is not necessary for the State to invoke the inclusive clause and in fact the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged towards the freight and handling charges separately. However, it was found that, as a matter of fact, in the bills the dealer-opposite party has charged much more amount than the amount spent by it towards the freight and handling charges. This excess amount was considered by the assessing officer as the charges made by the dealer-opposite party under the other heads and shall form part of the sale price. Without setting aside the finding recorded by the two authorities below to it, the Tribunal assumed that the said amount of Rs. 6,58,316 was towards the labour charges/insurance. The order of the Tribunal is far from satisfactory as it does not contain any reason as to whether the freight charged by the dealer-opposite party amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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