1997 (3) TMI 579

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....his revision has been preferred. 2.. The respondent has the business of manufacture of fishing trawlers and during the year under consideration had sold trawlers to three parties. Because of the escalation in the price of certain imported components, the respondent claimed higher price than the agreed amount and raised invoices for that. The assessing authority took the view that having raised invoices, the higher amounts claimed therein are includible in the turnover and the respondent is liable to pay tax on this amount. The respondent disputed the determination, in the first appellate forum, examining various documents executed between the parties and also between the Government and pointing out that the transaction of sale of trawler....

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....f the respondent that as the charge of higher price was not available to be made unless an agreement in that respect is reached subject to the overall agreement of the Government of India, mere raising of invoice would not ipso facto make the price receivable by the respondent. It was urged by the respondent that the invoices, which he said were bills, were nothing but an attempt to move the machinery for seeking recoupment of the excess costs incurred by him and did not per se constitute valid sale bills. 3.. Considering the respective contentions, the Tribunal addressed itself to the question as to whether the sale had taken place to the extent of the price escalation for which the respondent had raised the bills. It held the question ....

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.... the consideration for the sale or purchase of goods by a dealer either directly or through another, on his own account or on account of others, whether such consideration be cash, deferred payment or any other thing of value. Section 14-A is the provision regarding assessment in cases of price variations and stipulates that if any dealer receives any amount in a year due to price variations which would have been included in his turnover for any previous year if it had been received by him in that year, he shall within 30 days from the end of the year in which such amount is received, submit a return in such form as may be prescribed to the assessing authority and thereupon the assessing authority shall proceed to assess the tax payable on ....