TaxTMI 
TaxTMI 
1962 (12) TMI 32
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....ssumption that it had collected the tax at the higher rate was unjustified. The total turnover involved was Rs. 85,664, parts of which turnover were taxed at different rates. The assessee pointed out that the prices at which it sold the goods during the assessment year did not disclose that it realised a higher gross profit margin than in the years 1956-57 and 1957-58, which would certainly have been the case if it had in fact collected higher sales tax without showing it as such. The Appellate Assistant Commissioner examined the records and the sale and purchase prices during the period. He verified what is referred to as the "price structure" and felt satisfied that it could not have included any extra percentage of tax. There was also no....
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.... any portion of the extra tax had been included in the price structure with a view to conceal the collection of such a tax. In its subsequent proceedings, the Board called upon the assessee to prepare and furnish a statement in the form indicated by it in respect of sales inside and outside the State for identical types of cloth for the period 1st April, 1957, to 31st May, 1957. Such a statement was furnished to the Board. Along with this statement, the assessee pointed out that the general practice of the trade is to consign cloth at the commencement of the year to its usual customers in anticipation of orders and that such sales during the month of April in any year would always record a higher figure than in the rest of the months. It wa....
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....ales. Also the price for sales outside the State for the same varieties were less than the prices for sales inside the State. The difference in prices of the same variety was very markedly higher when compared to the prices charged for the month of April. It therefore follows that the dealers were aware of their liability to additional tax and provided for such additional tax by including it in the prices of the goods sold............" Accordingly, the Board restored the original order of assessment and it is against this order that the present appeal has been filed. A further fact has to be stated in connection with the imposition of the additional tax. While the additional tax was undoubtedly brought into force with effect from 1st Apri....
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....rices of the same goods charged in respect of transactions covered by local sales and inter-State sales, both during the period when the additional tax was in force and thereafter, it certainly does not appear that there was any uniform addition made to the price which might be taken to represent the additional quantum of tax. The variation ranges from as low as 2 per cent. to as high as 20 per cent. In some cases, there is no difference in the sale price as between a local sale and an inter-State sale, and in some others, local sales have recorded a sale price lower than that relevant to inter-State sales. Here is a commodity, cloth, of different varieties, the prices of which certainly does fluctuate widely; and solely for the reason that....
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.... between the dealer and the purchaser that an extra amount was to be included in the price structure to cover the additional levy, the purchaser would certainly have demanded to know why any amount over and above the 8 per cent. was so added. As we have pointed out, the additions ranged from as low as 2 per cent. to as high as 20 per cent. in some cases. And when the purchaser himself is not a consumer but a dealer, he would have been more vigilant to see that it was not called upon to pay a very much higher price than what the prevailing conditions warranted. It is true that the question that had to be examined by the Board was one of fact and had it stood only as a question of fact, we would hardly have thought it proper to interfere. Bu....
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....t could be availed of, the assessee has to satisfy the authorities that he did not collect the additional amount, and a claim of that kind did invite the scrutiny of the assessing authorities, the question in any instant case would certainly be whether any amount towards the additional tax was in fact collected. In the decision referred to, the writ jurisdiction of this Court was invoked and the lack of jurisdiction of the authorities was raised as vitiating the order. In addition, disputed questions of fact were in issue and this Court declined to issue the writ prayed for when the assessee had other special remedies open to him. In this appeal, this Court is exercising its jurisdiction under the Madras Sales Tax Act, so that the scope of ....