C forms do not by themselves prove inclusion of sales tax in price for deduction under section 8-A(1).

Deduction under section 8-A(1) of the Central Sales Tax Act is available only when the dealer proves that the sale price actually included the Central sales tax component, and the burden is on the assessee to place relevant material on record. The court said no rigid formula of proof can be prescribed, but C forms by themselves do not establish inclusion of tax in the sale price. On the facts, the assessee had not taken a definite evidentiary stand before the authorities, so the Tribunal was wrong to infer inclusion merely from filing of C forms.

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Issues: Whether the filing of C forms, by itself, proved that the Central sales tax component was included in the sale price so as to entitle the dealer to deduction under section 8-A(1) of the Central Sales Tax Act, 1956.

Analysis: Section 8-A(1) provides a formula for excluding the tax element from the aggregate of sale prices where the sale price in fact includes Central sales tax and the amount has not already been separately deducted. The benefit of the provision is available only when the dealer establishes, by material on record, that the sale price was inclusive of the tax component. The Court held that no fixed formula of proof can be prescribed, but the burden remains on the assessee to place relevant material showing inclusion of tax in the price. In the present case, the assessee had not taken a definite stand supported by evidence before the authorities below, and the Tribunal could not infer inclusion of tax merely from the existence of C forms.

Conclusion: The Tribunal was not correct in holding that filing of C forms alone amply proved inclusion of the tax component in the sale price; the answer was against the assessee and in favour of the Revenue.

Ratio Decidendi: A dealer can claim deduction under section 8-A(1) only on proof that the sale price actually included the tax component; C forms by themselves do not establish that fact.

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