Sales tax deduction from sale price upheld where Revenue failed to disprove the assessee's treatment of collected tax.

Sales tax collected but not deposited with the sales tax authorities was treated as deductible from the sale price where the first appellate authority had allowed the claim by speaking order and the Revenue produced no cogent evidence that the amount was retained with any ulterior motive. On the available record, the finding based on section 37 of the West Bengal Sales Tax Act was not displaced, so there was no basis to deny the reduction claimed. The deduction was upheld and the Revenue's challenge failed.

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Issues: Whether sales tax collected but not deposited with the sales tax authorities was deductible from the sale price.

Analysis: The first appellate authority had allowed deduction of the sales tax amount on a speaking order, and the Revenue produced no cogent evidence to show that the tax collected by the assessee was retained with any ulterior motive. In the absence of evidence to displace the finding based on Section 37 of the West Bengal Sales Tax Act, there was no basis to deny the assessee the reduction claimed.

Conclusion: The deduction of sales tax from the sale price was upheld and the Revenue's appeal failed.

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