1978 (8) TMI 214

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....s tax realised from his customers but not shown separately in the sale memos was not admissible in terms of sub-sections (1)(b) and (2)(a)(ii) of section 7 of the Bihar Sales Tax Act, 1959?" 2.. The relevant facts are that for the period of assessment 1965-66, the dealer claimed to deduct a sum of Rs. 1,32,710 from the gross turnover in terms of section 7(1)(b) and 7(2)(a)(ii) of the Act. In support of its claim, the dealer has stated that all the sale memos issued by it indicated that the value realised under the sale memo was inclusive of sales tax. Each sale memo bore a rubber-stamp marking "including tax". The assessing officer, however, did not accept the claim for deduction holding that there was no evidence to the effect that the ....

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....alf of the dealer "are indeed very persuasive", but on a plain reading of the provisions contained in section 7(1)(b) and 7(2)(a)(ii) of the Act unless the amount received as sales tax had been shown as such in the sale memos issued, the claim for deduction was not permissible. Dealing with the expression "sales tax collected as such" as occurring in the said two provisions of the Act, the Tribunal observed that the literal interpretation was that "the payment of the tax should be received so characterised. In other words, even at the time of receipt of the payment, the tax amount should be received separately or clearly known". With these observations, the Tribunal thought that the order passed by the Deputy Commissioner allowing the deale....

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.... the sale of goods? The idea underlying the use of the expression "collected as such" obviously seems to be that if there is evidence to indicate that part of the amount in a sale represented the sales tax, it must be said that the sales tax had been collected as such on the said transaction and it has to be allowed as a deduction in computing the taxable turnover. This Court in the case of Malpani Brothers v. State of Bihar[1974] 34 S.T.C. 234. , relying on a decision of the Supreme Court in the case of Ashoka Marketing Ltd. v. State of Bihar[1970] 26 S.T.C. 254 (S.C.)., observed that the observations of the Supreme Court in the said case did support the contention raised on behalf of the dealer. The contention of the dealer was that he ca....