Sales tax applies only to actual sale price; tyre replacement by exchange and cash adjustment did not trigger further levy.

Sales tax is exigible only on the actual sale price charged. Where defective tyres were replaced with a used tyre and cash adjustment after tax had already been paid on the original sale, the replacement was treated as an exchange or price concession rather than a separate taxable sale of the returned tyre. No further tax could be levied on any amount not charged as sale consideration, and the reference issue was also found not to arise from the Tribunal's order.

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Issues: Whether, on replacement of defective tyres with a used tyre and cash adjustment, the dealer was liable to pay additional sales tax on the value allegedly represented by the replaced tyre.

Analysis: The taxable event was the actual sale price charged from the customer. On the accepted facts, the original sale had already suffered tax, and the subsequent replacement of a defective tyre was treated as an exchange based on a concession in price, not as a separate taxable sale of the returned tyre. No deduction was made from tax already paid on the original transaction, and there was no basis to treat the replacement arrangement as requiring further tax on an amount not charged as sale price. The question framed was also held not to arise from the Tribunal's order in the reference.

Conclusion: The dealer was not liable to pay additional tax on the value said to be represented by the used tyre and cash adjustment on replacement of defective tyres.

Ratio Decidendi: Sales tax is exigible only on the actual sale price charged, and where defective goods are replaced by way of exchange after tax has already been paid on the original sale, no further tax can be levied on an amount not charged as sale consideration.

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