2008 (9) TMI 903

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... no entry tax is payable on the purchase of diaphragm. Heard learned counsel for the parties. Brief facts of the case are that the respondent-assessee is a firm registered with the Trade Tax Department, who deals with the purchase and sale of machineries and parts of the machineries. During the assessment year 1999-2000, the respondent-assessee supplied 10 diaphragms to Bharat Heavy Electricals Limited, Haridwar, for manufacture of the steam turbines, which the dealer purchased for $ 2,05,000. In terms of rupees, as per the dealer, value of the goods was Rs. 90,05,650. As such, the price shown by the dealer was Rs. 9,00,565 per diaphragm. Admittedly, no customs duty, insurance charges, port clearance charges were added to the price sh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t, 2000, defines the expression "value of goods". The said definition reads as under: "(e) 'value of goods' in relation to a dealer who has effected entry of goods into a local area shall mean the purchase price of such goods as defined in clause (gg) of section 2 of the Uttar Pradesh Trade Tax Act, 1948, or the market value of such goods if they have been acquired or obtained otherwise than by way of purchase." Since, it is nobody's case that the items in question were not purchased, as such, as mentioned in the above definition, for calculating the value of goods one has to refer to the definition of "purchase price" given under the U.P. Trade Tax Act, 1948. Clause (gg) of section 2 of said Act defines the expression "pu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....intention of the Legislature appears to be clear that once the "sale" is complete between the seller and purchaser, anything paid thereafter does not constitute the purchase price. In our opinion, that is why the expression "other than the cost of freight or delivery or the cost of installation when such cost is separately charged" is used in defining the expression "purchase price" in clause (gg) of section 2, quoted above. The learned counsel for the revisionist/State contended that the item purchased by the dealer could not have been imported within India without payment of the customs duty, and as such, the duty paid by the purchaser has to be added to the price of the goods. We do agree with the learned counsel for the revisionist t....