COMMISSIONER OF SALES TAX Vs. BASIC SHOE FACTORY

JUDGEMENT

(1.) The assessee manufactures and sells shoes. For the assessment year 1966-67, it disclosed gross sales at Rs. 6,57,366 of which U. P. sales were of Rs. 2,57,738. All these sales were made by the assessee to the State Trading Corporation at Agra. The corporation paid the entire agreed price to the assessee. Subsequently, the corporation paid a sum of Rs. 21,316 to the assessee on account of devaluation of currency. The assessing authority brought this amount to tax as part of the turnover of the assessee in respect of sale of shoes on the footing that this amount formed part of the sale consideration. This view was upheld in appeal. The appellate authority held that the assessee received the amount because the price of goods in terms of rupees had increased.

(2.) The assessee went up in revision. The revising authority found :

(3.) On this ground, the inclusion of this amount in the turnover was held invalid.