HINDUSTAN STEEL LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee in this case is M/s. Hindustan Steel Limited and in this appeal it has questioned the order of the Board of Revenue dated 16th October, 1976, setting aside the order of the Appellate Assistant Commissioner dated 30th October, 1971, and restoring the orders of the assessing authority dated 2nd March, 1971. For the assessment years 1965-66 to 1968-69, the assessee was assessed to various sums of taxable turnover. While passing final orders, the assessing officer allowed the assessee's claim for deduction of bending and cutting charges in respect of M.P. rounds, M.P. angles and M.P. plates on the ground that they are post-sale charges not liable to be included in the taxable turnover. Subsequently, the assessing officer reopened the assessments for the four years by an order dated 2nd March, 1971, and included the bending and cutting charges collected by the assessee from the purchasers as part of the taxable turnover, and the amounts so included by the assessing authority in his revised order dated 2nd March, 1971, were as follows : 1965-66 Rs. 39, 974.81 1966-67 Rs. 57, 156.52 1967-68 Rs. 30, 911.61 1968-69 Rs. 38, 105.16

(2.) AGGRIEVED against the inclusion of those amounts as part of the taxable turnover for the years, the assessee filed appeals before the Appellate Assistant Commissioner contending that the bending and cutting charges were charged for separately in the bills drawn on the customers, that these charges were post-sale charges not liable to be included in the taxable turnover that such charges were independent of the sales effected by them and that the assessee rendered the service of bending and cutting only on the request of the buyers after the completion of the sales for the purpose of easy transport. In support of the said submission, the assessee relied on the decision of this Court in Srinivasa Timber Depot v. Deputy Commercial Tax Officer, Choolai Division.

(3.) THE Appellate Assistant Commissioner upheld the assessee's contention holding that as per the delivery orders, the dealer supplied M.S. rounds, M.S. plates and M.S. angels and collected tax for the cost of the material sold ex-yard, that note 4 of the delivery order clearly indicated that the bending and cutting charges were independent of the sales effected by the dealer, that they related to the services rendered after sale at the request of the customers and in that view, he deleted such charges and cancelled the revised assessment.The Board of Revenue in exercise of its suo motu powers issued a notice to the assessee to show cause why the orders of the Appellate Assistant Commissioner should not be set aside and those of the assessing authority restored. The assessee showed cause, but the Board had chosen to confirm the proposal to set aside the order of the Appellate Assistant Commissioner and restore the revised orders of the assessing authority. The order of the Board of Revenue is challenged in this appeal by the assessee.