2008 (7) TMI 892

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....ealer-opposite party is carrying on the business of purchase and sale of safety razors and blades. It has admitted its taxable turnover of Rs. 32,70,538.77 and realised a sum of Rs. 14,62,018.14 as insurance charges and security along with each bill issued for sale. The assessing officer, after affording an opportunity of hearing to the dealer-opposite party, took the view that the said insurance charges and the security amount charged along with each sale bill by the dealer-opposite party from the customers are part of turnover, vide order dated January 14, 1991. The said order was challenged unsuccessfully in appeal before the Deputy Commissioner (Appeals), Ghaziabad. The matter was carried in further appeal before the Tribunal and the Tr....

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....losed turnover has not been disputed by the Department, it shows that there is no suppression of sales and as such, if the dealer has charged some amount by way of security and has separately shown the amount in the bills, it will not form part of the turnover. Section 2(i) of the U.P. Trade Tax Act defines "turnover". It means "aggregate amount" for which goods are supplied or distributed by way of sale or are sold, by a dealer, either directly or through another, on his account or on account of others, whether for cash or deferred payment or other valuable consideration. On a plain reading of the definition of "turnover", it is explicit that a comprehensive definition of "turnover" has been provided for. Use of words "aggregate amount" ....

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....ument was advanced before the first appellate authority who took the view that the dealer-opposite party by manipulating the account books is trying to avoid its liability to pay the trade tax and charged the amount as a part of sale price under the head "security amount". It has also been noticed that from the account books it is clear that a period of more than five years has passed but none of the purchasing dealers has demanded the refund of the alleged security amount. This all shows that the security charge is nothing but part of sale consideration and is, therefore, included in the definition of "turnover " as provided under section 2(i) of the U.P. Trade Tax Act. In view of the above discussions, I find sufficient force in the argu....