TaxTMI 
TaxTMI 
TaxTMI 
1976 (3) TMI 216
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..... Nos. 13 and 14 of 1974, are manufacturers and sellers of ultramarine blue. They sell only in wholesale to the dealers of the products manufactured by them. They had fixed the price including sales tax at 3 per cent in respect of the goods sold in the State of Tamil Nadu. It may be mentioned that in respect of the assessment years 1967-68 and 1968-69, which are the assessment years in question, sales tax payable under section 3(1) of the Tamil Nadu General Sales Tax Act (hereinafter called the Act), in respect of the commodities sold by the assessees for the period subsequent to 1st July, 1967, was 3 per cent. In the price list covering the period prior to July, 1967, the price included sales tax at 2½ per cent. There was a further ....
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....collected in the sale bills in order to claim the benefit of the Board's instructions not to include sales tax in the taxable turnover and that if the evidence showed that the amount actually collected by the assessees included the sales tax payable, the amount collected towards sales tax had to be deducted from the taxable turnover. Accordingly, the Tribunal directed the assessing authority to work out the actual sales tax collected by the assessees and give relief to them. In T.C. No. 15 of 1974, the assessees are M/s. Mysore Fertilisers. In respect of the manure mixture manufactured by them, the prices are fixed by the Government of Tamil Nadu under the relevant control orders. The maximum retail price per bag fixed by the Government in....
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....s some dispute as to the amount actually included in the sales turnover of manure mixture, the Tribunal directed the assessing authority to work out the sales tax collections made by them and for that purpose remanded the matter. So far as the sales of empty gunnies were concerned, the Tribunal directed the deletion of the same on the ground that the assessees were not dealers in empty gunnies and that the sale of empty gunnies were not in the course of their business. It is against this order of the Tribunal that the revenue has filed the above three cases. We could easily dispose of the point relating to the taxability of the turnover relating to the sales of empty gunnies. In view of the decision of the Supreme Court in State of Tamil N....
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....in respect of each State is different, the price list indicated the various aggregate amounts payable for the supplies made to dealers in various States. The actual bills made out by the assessee showed the correct amount referred to in the price list including the sales tax and did not show the price and the sales tax separately. It was contended on behalf of the assessee that since all sales were based on the price list supplied to the purchasers, the purchasers were clearly made aware of the fact as to what portion of the bill amount represented the net price for the tea and what portion represented the sales tax and that, therefore, though the break-up of the figures was not shown in the bills, the sales tax was clearly intended to be p....
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.... the tax. If the price list apparently shows inclusion of the sales tax, and the payment of the sales tax was not and could not be the subject-matter of bargain between the parties, it had to be inferred that the purchaser agreed to pay the tax and did pay sales tax when he paid the price as fixed in the list and purchased the article. In fact, in the case of Mysore Fertilisers it was not even open to the assessees to waive the sales tax collections as that had already been included in the price fixed by the Government, and the manure will have to be sold only at the price fixed. Even in the case of Ultramarine and Pigments Ltd., there was no evidence to show that in any particular transaction there was any bargain under which the assessee ....