Separate cesses on coal despatches do not form sale price where they are distinct from the goods' consideration.

Excise, welfare and rescue cesses collected on coal despatches by road were treated as imposts under the mining laws, not as consideration for the coal itself, and were separately recovered from the customer. Because the charges were distinct from the sale transaction and not integrated with the price of goods, they did not form part of the sale price under section 2(q) of the Bihar Sales Tax Act, 1959. Earlier authorities were distinguished on the basis of a different statutory setting. The amount was therefore excluded from taxable turnover, and the reference was answered in favour of the assessee.

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Issues: Whether excise, welfare and rescue cesses realised by the assessee on despatches of coal by road formed part of the sale price liable to sales tax under section 2(q) of the Bihar Sales Tax Act, 1959.

Analysis: The cesses were levied under the relevant mining statutes and rules on the incidence of despatch of coal, not on the sale of coal as such. The scheme of the provisions showed that the impost was collected either by the railway administration in case of rail despatches or by the mine-owner in case of road despatches, and the ultimate burden was on the customer. The amount was separately recovered as a distinct impost and not as valuable consideration for the coal itself. A charge that is separate from the price of the goods and is not integrated with the sale transaction does not become sale price merely because it is recovered from the purchaser. The earlier authorities relied upon by the Tribunal were distinguishable because they dealt with a different statutory setting where the duty attached to the goods at a stage connected with their fitness for sale.

Conclusion: The amount of Rs. 54,305 realised as excise, welfare and rescue cesses on despatches of coal by road was not part of the sale price and was not correctly included in taxable turnover. The answer to the reference was in the negative, in favour of the assessee and against the revenue.

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