TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the turnover relating to water charges and the cost of ridges and covers amounted to sales exigible to tax under the Andhra Pradesh General Sales Tax Act, 1957. (ii) Whether the cost of tender schedules supplied to intending allottees was exigible to sales tax.
Issue (i): Whether the turnover relating to water charges and the cost of ridges and covers amounted to sales exigible to tax under the Andhra Pradesh General Sales Tax Act, 1957.
Analysis: Sale under section 2(n) of the Act involves a transfer of property in goods for consideration in the course of trade or business. The assessee purchased water and supplied it to allottees, and also purchased ridges and covers and supplied them for consideration. These transactions involved transfer of property in goods and fell within the statutory definition of sale. The reasoning was supported by earlier authority holding that supply of goods for consideration, even at cost price, can amount to sale where there is no obligation preventing such transfer.
Conclusion: The turnover relating to water charges and the cost of ridges and covers was rightly held taxable and the finding was against the assessee.
Issue (ii): Whether the cost of tender schedules supplied to intending allottees was exigible to sales tax.
Analysis: The supply of tender schedules was not treated as a business of buying or selling that commodity. The assessee was under an obligation to supply the tender schedules to intending allottees, and the transaction was not regarded as incidental or ancillary business in the sense required to attract tax. The authorities dealing with tender forms and similar documents showed that such supply does not, by itself, constitute taxable business in that commodity.
Conclusion: The cost of tender schedules was not exigible to sales tax and the finding was in favour of the assessee.
Final Conclusion: The revision succeeded only in relation to the tender schedules, while the turnover relating to water charges and ridges and covers remained taxable; the Tribunal's order was set aside only to that extent.
Ratio Decidendi: A transaction constitutes a taxable sale when there is a transfer of property in goods for consideration in the course of business, but a compulsory supply of tender schedules not amounting to trading in that commodity is not exigible to sales tax.
TaxTMI 
TaxTMI 
