TaxTMI Login
Just a moment...
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
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether chips and ballast supplied by the dealer were exigible to tax only at 4% as minor minerals falling within the relevant entry in the sales tax schedule. (ii) Whether transportation and incidental charges shown separately were deductible from the gross taxable turnover as post-sale expenses.
Issue (i): Whether chips and ballast supplied by the dealer were exigible to tax only at 4% as minor minerals falling within the relevant entry in the sales tax schedule.
Analysis: The material on record showed that the goods in question were identical to those considered earlier in the binding decision relied upon by the Court. The Court accepted that stone chips and ballast answer the description of minor minerals under the statutory scheme and, on that basis, fall within the lower rate of tax rather than the higher rate applied by the authorities below.
Conclusion: The issue was answered in favour of the assessee, and the goods were held exigible only to tax at 4%.
Issue (ii): Whether transportation and incidental charges shown separately were deductible from the gross taxable turnover as post-sale expenses.
Analysis: The Court found the transportation-related charges to be linked to the pre-sale stage in the factual matrix and noted that the charges were separately identifiable in the contract and billing structure. In the same line as the earlier binding decision, such amounts were treated as not forming part of the sale price for the purpose of turnover computation.
Conclusion: The issue was answered in favour of the assessee, and the separately shown transportation and incidental charges were held deductible from taxable turnover.
Final Conclusion: The revision succeeded, the orders below were set aside, and the assessing authority was directed to recompute the tax liability in accordance with the governing legal position.
Ratio Decidendi: Where the supplied goods are minor minerals under the applicable sales tax schedule, they are taxable at the rate prescribed for that entry, and separately charged pre-sale transportation and incidental expenses do not form part of the taxable sale price.
TaxTMI 
