TMI Blog1999 (4) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts found by the Tribunal are that the assessee is a manufacturer of industrial plastic goods out of teflon and fluron. In the assessment year under consideration, the assessee has credited an amount of Rs. 1,97,224 to excise deposit account. Out of this amount, a sum of Rs. 48, 682 had been returned to the customers for the reasons that the delivery of the goods was not taken and there was excess deposit. The balance in that account remained at Rs. 1,48,542. This amount has been received by the assessee on the goods sold by it. The assessee claimed that it was not a trading receipt because the assessee had received it on condition that the deposit shall be refunded to the buyer in case it is not finally payable by the assessee. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale price is a matter of accounting policy followed by the assessee, but it cannot alter the character of the amount received by the assessee as part of the sale price received by him for the goods sold by him. Therefore, according to him, the decision of the Tribunal is in consonance with the principle enunciated in Chowringhee Sales Bureau's case [1973] 87 ITR 542 (SC). Having carefully considered the rival contentions we are of the opinion that the Tribunal has rightly reached its conclusion. The facts of the case squarely fall within the principle enunciated in Chowringhee Sales Bureau's case [1973] 87 ITR 542 (SC). That was a case in which the assessee as an auctioneer had received a sum of Rs. 32,986 as sales tax from the buyers. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other character except as seller of goods as part of the sale price at best subject to the stipulation that in case ultimately the liability of tax is not sustained the amount collected as tax would be refundable. That is otherwise so in the case of any amount collected from the buyer referable to indirect tax, where ultimately any refund becomes due, the same can be refunded to the payer only on showing that the same has not been passed on to the buyer. The court therefore while holding that the amount is a trading receipt made it further clear that the assessee may be entitled to deduction of the amount as and when it bears the character of expenses as allowable trade expenses. The decision relied on by the assessee in Hindustan Housing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sufficient to point out that there is a clear distinction between cases such as the present one, where the right to receive payment is in dispute and it is not a question of merely quantifying the amount to be received and cases where the right to receive payment is admitted and the quantification only of the amount payable is left to be determined in accordance with settled or accepted principles." Before us it is nobody's case that the assessee has no right to receive the amount which he has received from buyers and was credited to the excise deposit account. What is disputed by the assessee in fact is, his liability to incur expenditure in respect of goods manufactured by him. Therefore, in our opinion, Hindustan Housing and Land Dev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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