Sale price and interest liability include transportation charges and revised consideration when the tax liability accrues.

Transportation charges recovered from the purchaser formed part of the sale consideration under the Gujarat Sales Tax Act, because the statutory definition of sale price covered sums paid or payable for the sale and amounts charged for work done in respect of the goods before delivery; they were therefore includible in taxable turnover. Interest under Section 47(4A) also ran from 14.09.1981 on the revised gas price, because tax liability arose when the revised consideration became operative, and later receipt of the differential amount did not postpone that liability. Both questions were answered against the assessee.

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Issues: (i) Whether transportation charges recovered from the purchaser formed part of the sale price and were includible in the taxable turnover under the Gujarat Sales Tax Act, 1969. (ii) Whether interest under Section 47(4A) was chargeable from 14.09.1981 on the revised gas price notwithstanding later receipt of the differential amount from the purchaser.

Issue (i): Whether transportation charges recovered from the purchaser formed part of the sale price and were includible in the taxable turnover under the Gujarat Sales Tax Act, 1969.

Analysis: The definition of sale price under Section 2(29) is wide and covers the amount of consideration paid or payable for a sale, including sums charged for things done by the dealer in respect of the goods before delivery. The amount recovered as transportation charges was admittedly received from the purchaser and was treated as part of the sale transaction. The cited Supreme Court authorities supported the principle that amounts forming part of the consideration for the sale are includible in turnover.

Conclusion: The transportation charges formed part of the sale price and were liable to tax.

Issue (ii): Whether interest under Section 47(4A) was chargeable from 14.09.1981 on the revised gas price notwithstanding later receipt of the differential amount from the purchaser.

Analysis: The liability to pay sales tax on the revised price arose when the Government revised the price with effect from 14.09.1981, because tax liability is linked to the sale and the revised consideration, not to the later date on which the purchaser actually remitted the differential amount. The later receipt of payment did not postpone the statutory liability to pay tax or interest on the revised amount.

Conclusion: Interest under Section 47(4A) was rightly charged from 14.09.1981.

Final Conclusion: Both referred questions were answered against the assessee, and the reference was disposed of with the revenue prevailing on the substantive tax and interest issues.

Ratio Decidendi: Amounts recovered as part of the sale transaction form part of sale price and are taxable turnover, and where tax liability arises on a revised sale consideration, interest runs from the date the liability accrues and not from the later date of actual receipt from the purchaser.

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