TaxTMI 
TaxTMI 
2017 (11) TMI 1173
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....nt was of the view that they were not liable to pay Sales Tax on these instruments as they are claiming exemption and applied for the exemption with the Sales Tax Department. Accordingly, the appellant raised invoices with composite prices of Rs. 265/- per unit as per the contract. Later on, the Sales Tax Department denied the exemption to the appellant accordingly appellant was required to pay Sales Tax to the Sales Tax Department. As per the contract, the prices are inclusive all taxes, therefore, appellant claim refund of excess duty paid on the component of Sales Tax paid by them. The refund claim was rejected by the authority below on the ground that as the Sales Tax has been paid after completion of the contract and the same is not in....
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....i-III 2005 (183) ELT 362 (Tri. -Chennai). 4. On the other hand Ld. AR reiterated the findings of the impugned order and submits that as Sales Tax has been paid by the appellant after discharging their contract, therefore, they are not entitle for refund claim. 5. Heard both the sides and considered the submissions. 6. We find that the price as per the purchased order is inclusive of all taxes including Sales Tax which was leviable at the time of clearance of goods but the appellant was under bonafide belief that they are not liable to pay Sales Tax on their goods and applied for exemption. The said exemption was denied to the appellant. Consequently, the appellant was required to pay Sales Tax for the goods already clea....
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....e price is inclusive of duty does not mean that the price includes duty element when the duty is nil. When the exemption was withdrawn, the appellants made Herculean efforts for the re-introduction of the exemption notification. They were also successful when the Govt. of India re-introduced the exemption with effect from 1-10-2001. As law abiding citizens, the appellants paid excise duty treating Rs. 621/- as cum-duty price. This action of the appellants in the peculiar circumstances of the case should not be held against them to deny the rightful benefit due to them. Even though duty was paid on 3-10-2001 the same is not payable by virtue of re-introduction of exemption notification. The Ordnance Factory, Trichy were very clear that they ....
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....aim was filed on 05.07.2002. I find that the lower authority has rejected the refund application of the appellants on the ground that as per price clause of purchase order, any increase in taxes and other statutory duties/levies shall be to the contractors account. The said clause is reproduced below:- "That the prices are firm and are inclusive of ST, ED and other statutory duties/levies etc, and Freight, packing & forwarding charges. Any increase in taxes and other statutory duties/levies after the expiry of delivery date shall be to the contractors account, However, benefit of any decrease in these taxes/duties shall be passed on to the purchaser by the supplier. " Therefore, it is evident that any increase in duties, tax levy after ex....