COMMISSIONER SALES TAX Vs. SHIVALIK MOTORS AND TRACTORS

JUDGEMENT

(1.) Challenging the legality and validity of the order of the Tribunal passed by Sales Tax Tribunal, Saharanpur in Second Appeal No. 127 of 1987, the present revision has been filed at the instance of the Commissioner of Sales Tax. In the memo of revision the following question of law has been raised in support of the revision:" Whether the Sales Tax Tribunal was legally justified in holding that freight charged before sale/delivery of tractors cannot be a part, of taxable turnover despite the fact that Section 2(I) of the U.P. Sales Tax envisages otherwise? "

(2.) The dispute relates to the assessment year 1984-85. The dealer opp. party deals in tractors, tractor parts and power driven agricultural implements. It disclosed the taxable turnover at Rs. 11,71,670-58 for the assessment year 1984-85 and claimed exemption on the amount of freight realized from the customers on the ground that it was not a part of turnover. The said claim was rejected by the Assessing Authority, who fixed the taxable turnover at Rs. 24,25,349/-, by the order dated 6th of September, 1995. The said assessment order was challenged by way of appeal which came up for consideration before the Assistant Commissioner (Judicial) II Sales Tax, Saharanpur. The appeal was allowed on the ground that the freight charges realized by the dealer opp.party were in the nature of outward freight and therefore would not form part of taxable turnover, by the order dated 11th of July, 1986. The Commissioner of Sales Tax challenged the order of the First Appellate Authority in second appeal No. 127 of 1987 before the Sales Tax Tribunal. The Sales Tax Tribunal, Saharanpur has confirmed the order of the First Appellate Authority.

(3.) Heard the counsel for the parties and perused the record.