2001 (8) TMI 1165

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.....L. Verma, Senior Advocate (Manmeet S. Janwal, Amrita Swaroop and Punit Dutt Tyagi, Advocates, with him), for the appellant.   --------------------------------------------------   ORDER   The appellant is a dealer under the provisions of the Bihar Sales Tax Act. It runs a canteen and a library for the benefit of the officers and employees of Tata Iron and Steel Company Limi....

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....gh Court, this appeal by special leave has been filed. 3.. It appears to us that the stand of the respondents is not warranted by law. Sales tax is chargeable on the sale of goods by a dealer. The charge is on the gross turnover and according to section 2(j) of the Bihar Finance Act, 1981 "gross turnover" means for the purpose of levy of sales tax in respect of sale of goods the aggregate amoun....

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....iture account is prepared the excess of expenditure over the income is made good by giving subsidy to the dealer. The subsidy so given cannot be said to be directly relatable to any item of food or goods sold. It is not possible to accept that the subsidies can possibly be regarded as valuable consideration in respect of sale or supply of goods. 6.. Learned Senior Counsel for the appellant drew....

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....ay not be regarded as part of the purchase price but as far as the present case is concerned, lumpsum payment which, in the very nature of things, is ex gratia cannot be regarded as being part of the sale price and consequently form part of the gross turnover of the dealer. There was no statutory obligation of TISCO to pay any amount to the dealer. It is only as a measure of staff welfare that ex ....