M/S AMRUTANJAN LTD. Vs. COMMISSIONER TRADE TAX

JUDGEMENT

(1.) The assessee is a reputed dealer, which is manufacturing and selling Medicament of different types. According to it, the medicines are manufactured out of Uttar Pradesh, and stocks are transferred within the U.P. It is from the stockyard stationed within the State that the product is ultimately sold to whole seller.

(2.) Before the trade tax authorities, it was contended that the Maximum Retail Price i.e. MRP shown on the product is not relevant for the purpose of stock transfer, inasmuch as such price is specified so that the product is sold at a uniform price throughout the State. The Tribunal, however, declined to accept such plea on the ground that the transfer by assessee upon rates below the MRP is not believable. The order of the Tribunal records that assessee has shown price of the Medicament in two separate columns, inasmuch as in one of the column the rate before sales tax has been shown, while in the other column the maximum retail price is shown. The plea of the assessee that it is done with an intent to maintain uniformity in the price of the product has been disbelieved. With such findings the Tribunal while partly allowing the appeal of the assessee has maintained increase in the turnover of sales as well as consequential imposition of tax.

(3.) Learned counsel for the assessee states that there is no dispute about stock transfer of Medicament from beyond the State to the stockyard in U.P., and that the mentioning of MRP is not relevant for the purposes of determination of turnover, inasmuch as the transfer is made upon the rate before the sales tax, which alone correctly portrays the value of turnover.