2002 (5) TMI 824

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....iquidated damages levied for delay in the supply of goods liable to be deducted from the sale price while levying sales tax under the Central Sales Tax Act, 1956? This is the short question that arises for consideration in this case. 2.. A few facts may be noticed: The petitioner is a registered dealer. It filed the return for the accounting year 1988-89. It showed a gross turnover of Rs. 19....

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....el for the parties have been heard. 5.. Mr. Goyal, learned counsel for the petitioner, contends that the tax is leviable on the actual amount received by the dealer for supply of goods. Any amount deducted or paid on account of delay in supply is liable to be reduced from the settled price while fixing the gross turnover. The claim made on behalf of the petitioner has been controverted by Mr. S....

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....f inter-State sales was Rs. 19,18,71,474.50. 7.. Mr. Goyal contends that any deduction made from the price should be taken into account while determining the gross turnover. He places reliance on the decisions in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Advani Oerlikon (P) Ltd. [1980] 45 STC 32 (SC), State of Tamil Nadu v. Indian Cable Company Ltd. [1984....

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....ignment thereof within the period prescribed for delivery the Director-General DOT shall be entitled to recover ½ per cent of the entire value of the contract for each week of delay or part thereof, subject to a maximum of 5 per cent of the value of the contract." 11.. A perusal of the above shows that the buyer was entitled to recover liquidated damages for delay in delivery of the good....