1987 (4) TMI 468

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.... inclusion of an additional amount in the sale price for the purpose of computation of the taxable turnover of the assessee. The assessee carries on the business of selling tyres. According to the prevailing practice, if a tyre is found defective, it is replaced with a new tyre. However, in some cases where the tyre has been used for some time, a part of the price is charged while replacing it wit....

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....ng the old tyre with a new tyre, in addition to the payment of sales tax on the entire sale price of the initial transaction. There is no occasion to require the assessee to pay tax on an amount which is not charged from the customer as sale price while replacing the tyre. It is not as if the department reduces the sale price of the first transaction by the amount for which the adjustment is given....