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Issues: Whether coal mines welfare cess, stowing duty and rescue cess recovered by a coal mine owner from purchasers on despatch of coal by road form part of the sale price and are includible in turnover for sales tax assessment.
Analysis: The duties imposed under the relevant enactments were treated as duties of excise, but the statutory schemes showed a material distinction between railway recovery and road despatches. Where coal was despatched by road, the liability to pay the duties rested on the mine owner, who was required to self-assess, pay the duty within the prescribed time and discharge the statutory obligation without any provision authorising recovery from the purchaser as such. The Court held that the mine owner was not a mere collecting agent in road despatch cases. Since the only practical manner in which the owner could recover the duty from the purchaser was by loading it into the price charged for the goods, the amount so recovered constituted part of the valuable consideration for the sale. The principle that a tax borne by the seller and passed on to the buyer as part of the price forms part of sale price and turnover was applied.
Conclusion: The amounts recovered towards coal mines welfare cess, stowing duty and rescue cess formed part of the sale price and were rightly included in the taxable turnover; the challenge failed.
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