TaxTMI 
TaxTMI 
1987 (7) TMI 562
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....fter referred to as the "Act"), the Additional Sales Tax Tribunal, Orissa, has forwarded a statement of case and referred the following question for giving an interpretation to the expression "cost" appearing in serial No. 90 of the notification dated 23rd April, 1976: "Whether, on the facts and in the circumstances of the case, the Additional Sales Tax Tribunal was correct in holding that the ....
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....---------------------------------------- Serial Description of goods Rate of tax No. -------------------------------------------------------------------------- 90 'Wireless reception instruments and apparaTwelve per cent." tus, radio and radio-gramophones, television sets, accumulators, amplifiers and loudspeakers and spare parts, component parts and accessories thereof and electrical val....
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....etation of the expression "cost". 5.. It was submitted on behalf of the dealer in this Court that the expression "cost" must mean the cost to the selling dealer and not the sale price. It was accordingly contended that the notification would have no application to the sale of radios, etc., which were purchased by the dealer for less than Rs. 150 each but were sold at a price higher than Rs. 150....
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.... does not define anywhere "cost price". Section 4 which deals with incidence of taxation also takes into account only the dealer's "gross turnover" during a year. Sales tax means an incidence of tax on sale. Obviously, the notification had been issued for realisation of sales tax. The expression "cost " must therefore mean the sale price of the goods sold by the dealer, i.e., which will be the cos....