https://www.taxtmi.com/caselaws?id=160250 Rule 50 of the Gujarat Sales Tax Rules, 1970 could not be applied to notionally treat the sale price of an exempt industrial unit as inclusive of tax where the unit was barred from collecting sales tax under the incentive scheme. The rule operates only when the sale price actually contains a tax element, whether separately shown or embedded, so that taxable turnover can be worked out by excluding that element. Where no tax is payable and no tax may be collected, there is no lawful basis to assume a hidden tax component or reduce turnover by a formula meant for taxable sales. Applying the rule in that setting would enlarge the exemption beyond the notification. en-us Fri, 04 Dec 1998 00:00:00 +0530 Thu, 12 Dec 2013 18:32:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=160250 Rule 50 of the Gujarat Sales Tax Rules, 1970 could not be applied to notionally treat the sale price of an exempt industrial unit as inclusive of tax where the unit was barred from collecting sales tax under the incentive scheme. The rule operates only when the sale price actually contains a tax element, whether separately shown or embedded, so that taxable turnover can be worked out by excluding that element. Where no tax is payable and no tax may be collected, there is no lawful basis to assume a hidden tax component or reduce turnover by a formula meant for taxable sales. Applying the rule in that setting would enlarge the exemption beyond the notification. Case-Laws VAT and Sales Tax Fri, 04 Dec 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=160250