Sale price includes statutory levies recovered with coal despatches; welfare cess, stowing duty and rescue cess are taxable.

Amounts collected separately on coal despatches by road towards coal mines welfare cess, stowing duty and rescue cess were held to form part of the sale price for sales tax purposes. The Court applied its earlier ruling on an identical factual and legal setting, under which statutory levies recovered from purchasers in connection with the sale transaction were includible in the sale price. On that basis, these collections were treated as part of the taxable turnover and were liable to sales tax.

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Issues: Whether amounts collected separately on despatches of coal by road towards coal mines welfare cess, stowing duty and rescue cess under statutory provisions formed part of the sale price and were liable to sales tax.

Analysis: The question was governed by the earlier decision of the same Court on an identical factual and legal situation, where statutory levies recovered from purchasers on the despatch of goods were held to be part of the sale price. Applying that settled view, the amounts collected from purchasers towards welfare cess, stowing duty and rescue cess, being levies recovered in connection with the sale transaction, were includible in the sale price for computing taxable turnover.

Conclusion: The amounts collected separately on despatches of coal by road towards coal mines welfare cess, stowing duty and rescue cess were part of the sale price and liable to sales tax.

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