2006 (11) TMI 586

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....ate fluctuation and consequent variation in customs duty paid forms part of the price and consequently liable to be assessed as sales turnover. The admitted facts are that agreed price is linked to value of imported components and there is a price escalation clause, which entitles petitioner to recover differential exchange rate and to collect the consequent customs duty payable thereon. This presupposes that price in Indian rupee was fixed depending on the prevailing exchange rate and, in fact, the exchange rate fluctuates in favour of the purchasers, then petitioner would have had to pay the differential amount to the purchaser. The Tribunal confirmed the findings of the lower authorities on the ground that price escalation is part of the....

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....cond decision above referred to is the payment made by the Government from the oil pool account to the refinery to make up the loss on account of price fixation of petroleum products by the Government. The amount so paid is very similar to the fertiliser subsidy paid in the other case. Therefore this decision also does not help the petitioner to get over the liability and since the facts herein clearly establish that the price difference received is based on a provision in the contract of sale and it forms sales turnover assessable under the Act, there is no scope for interference. An alternative question raised in Sales Tax Revision No. 390 of 2006 pertaining to the year 1995-96 is that the turnover in respect of the sales were offered ....

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....he additional question arising from the order of the Tribunal for the year 1995-96 is whether the Tribunal was justified in confirming disallowance of exemption claimed under section 5(2) of the CST Act on supply of imported goods to the purchaser, NTPC (National Thermal Power Corporation). On going through the Tribunal's order, we find that the Tribunal has confirmed disallowance for want of evidence. We do not know what prevented the petitioner from furnishing documents, copy of the contract, bill of entry, etc., which would have proved the nature and character of the transaction for substantiating petitioner's claim for exemption. In the first place the purchaser also being a Government company would have made provision for payme....