1959 (11) TMI 50

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....r is doing the business of purchase and sale of cement at Satna. During the assessment year 1955-56 his turnover of the sale of cement was Rs. 20,979-14-3 and the total sales tax payable by him was Rs. 642-8-3. After deducting the amount of tax already paid by him at the time of the purchase of the cement, viz., Rs. 533-1-9, the balance which remained due from him was Rs. 109-6-6. The difference between the sales tax paid at the time of the purchase of cement and the tax payable after its sale was due to the addition by the petitioner of transport charges to the sale price. Similarly, in the next two years the extra amount of sales tax which remained due from the petitioner was Rs. 306-1-9 for the assessment year 1956-57 and Rs. 302-89 nP. ....

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....ax is assessed on the taxable turnover after deducting therefrom the permissible deductions mentioned in clause (j). The definition of "sale price" is given in section 2(h), the material portion of which is as follows: " 'Sale price' means the amount payable to a dealer as valuable consideration for- (i) the sale of any goods, less any sum allowed as cash discount according to ordinary trade practice, but including any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation when such cost is separately charged; This definition makes it clear that if the transport charges have not been separately charged to the c....

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....ubmit the returns of the turnover. Under section 12(4) the tax is payable by the dealer. Sub-section (5) of section 12 lays down that if a dealer defaults in the payment of the tax, the amount of the tax shall be recoverable from him as arrears of land revenue. The Act prescribes a penalty for failure to furnish the returns of turnover within the time allowed and for failure to pay the tax within the prescribed time. These provisions make it plain that the dealer and not the purchaser is liable to pay the tax and that the dealer is not an agent of the Government for the collection of the tax. The dealer may himself bear the burden of the tax or may pass it on to the purchaser by including it in the sale price or by collecting it separately ....