TaxTMI 
TaxTMI 
1996 (1) TMI 406
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....venue for the answer of this Court: (1) Whether, the Board is justified in the facts and circumstances of the case, in determining the market value-cum-sale price at Rs. 117 per metric tonne by including transport charges and others in it? (2) Whether, the Board is justified in the facts and circumstances of the case, in maintaining imposition of penalty under section 17(3) as just and legal though inadvertently stated under section 43(1)? (3) Whether, in the facts and circumstances of the case, the Board is justified in maintaining the orders of lower authorities including penalty by discarding the order of Board of Revenue on the same matter for the year 1977-78? 2. The brief facts giving rise to this reference a....
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....l was filed before the Appellate Deputy Commissioner of Sales Tax, Bilaspur, and it was submitted that while determining the market value of bauxite, transportation charges have not been excluded and it was contended that if transportation charges are not excluded the value of bauxite raised from its mines comes to Rs. 117 per metric tonne and those purchased from Manikpur comes to Rs. 101.53 per metric tonne and if it is excluded the value of bauxite raised from its own mines would reduce to Rs. 70 and those purchased from Manikpur would reduce to Rs. 45 per metric tonne. This plea was not accepted by the Appellate Deputy Commissioner as the company itself has shown the value of bauxite at Rs. 117 per metric tonne in the books without maki....
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....deration for the sale of any goods less any sum allowed as cash discount, according to ordinary trade practice but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation when such cost is separately charged and the expression 'purchase price' shall be construed accordingly." As per this definition, "sale price" would not include cost of freight or delivery or cost of installation when such cost is separately charged. It is further clarified that the expression "purchase price" shall be accordingly construed. 4.. The learned counsel for the assessee submitted that in the present case all the thr....
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....early mentioned that Rs. 117 per metric tonne was the actual landed cost at the plant site and in that it has been shown that the average rate of transportation, i.e., freight per metric tonne was Rs. 46.85 and, therefore, the actual cost of the goods would be Rs. 70.79 per metric tonne. All the authorities below have proceeded on the basis of so-called balance sheet and other books of account placed before them. Learned counsel for the assessee submits that all those records did contain this statement but somehow it has not been so referred and the authorities have only taken the landed cost at the plant at the rate of Rs. 117 but no attention was paid to the break-up. Therefore, the learned counsel has brought to our notice the said fact ....
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....atement showing the nature of the bauxite consumed and the nature mentioned therein, we are of the opinion that Rs. 117 per metric tonne was the landed rate at the plant which included freight charges at the rate of Rs. 46.85 per metric tonne. Therefore, after deducting this as per section 2(o) of the Sales Tax Act, the price will come to Rs. 70.79 per metric tonne and the assessee-company is assessable at this rate of the goods brought by it as entry tax. Therefore, questions Nos. 1 and 3 are answered in favour of the assessee and against the Revenue. 6.. As regards question No. 2 relating to imposition of penalty, it is submitted that in fact the assessee-company was under the misapprehension that they had already entered into contract....