STATE OF TAMIL NADU Vs. MALABAR TIMBER COMPANY

JUDGEMENT

(1.) THESE two cases relate to the assessments made under the madras General Sales Tax Act, 1959, for the year 1961-62 in respect of two different assessees. The assessees are dealers in timber and, in the course of their assessments the "lot cooly charges" which they had collected separately without including them in the sale price in the invoices have been taken to be part of the sale price of timber sold and assessed as such. The assesses questioned the inclusion of the said "lot cooly charges" in the sale price contending that the said charges were collected specifically for being paid to the coolies who sort out the required size of timber out of the entire lot of timber lying in the godown and that they have been shown separately in the sale bills as relating to handling charges. The assessing authority as well as the Appellate Assistant Commissioner on appeal, rejected this contention of the assesses. On further appeals, the Sales Tax Appellate tribunal, however, relying on the decision of this court in Srinivasa Timber depot v. Deputy Commercial Tax Officer held that the "lot cooly charges" collected by the assessees were only post-sale service charges and not pre-sale charges as contended by the revenue. Aggrieved against the order of the Tribunal, the revenue has come before us.

(2.) IT is contended on behalf of the revenue that though the said decision of this court in Srinivasa Timber Depot v. Deputy Commercial Tax officer held that "lot cooly charges" collected separately without including the same in the sale price have to be taken as service charges and, therefore, could not be included.