1989 (1) TMI 362

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....er Section 21 of the U. P. Sales Tax Act, 1948 (briefly the Act, 1948), all these writ petitions are consolidated and disposed of together. 2. The petitioners, registered parnership firms are carrying on business in coal and are registered under both the U. P. and Central Sales Tax Act. The modus operandi of the petitioners' business which is admitted in the counter affidavit is that the District Magistrate makes the assessment of the demand of coal, required by the brick kiln owner and the coal depot holders and sends intimation thereof to the Government of Uttar Pradesh, The District Magistrate nominates the coal agents for importing the coal from the collieries for the allotets Then the U. P. Government makes arrangement for the r....

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....on and para 4 of the Counter-Affidavit]. This being the factual position, the freight was never included in the turnover of the petitioners, but the assessing officer successively caused three notices to be served on the petitioners under Section 21 of the Act, 1948. The petitioners filed objections challenging such notices. Whereas, the Assessing Officer dropped the first two notices, he has been pursuing the third notice being Annexure 6 almost in all the petitions and he having rejected the objections of the petitioners passed orders being Annexure 8 in all the cases. The back-drop of issuing the impugned notices Annexure 6 in all these cases is that in Commissioner of Sales Tax v. M/s M. P. Traders, 1980 U. P. T. C. 582, learned single ....

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....y paid by the allottees, has been enquivocally admitted. No freight having been, admittedly, paid by the allottees to the petitioners, the question of including the freight in the turnover of the petitioners does not arise. Even if it is assumed that freight was paid by the allottees to the petitioners, still so long as the position is not disputed that the freight was not included in the bill of sale price, the freight could not be included in the turnover as held by the Supreme Court in M/s Vinod Coal Syndicate v. Commissioner of Sales Tax, U. P., Lucknow, 1988 U. P. T. C. 218, that the Legislature plainly intended that where the cost of freight was charged separately, that amount could not be included in the turnover of a dealer. There i....