PRAKASH HEMRAJ JAIN Vs. PREMIER FURNANCES PRIVATE LIMITED

JUDGEMENT

(1.) THE plaintiff has filed the suit for balance of unpaid amount and also for recovery of Sales Tax dues which he has paid to the Government. On Summons for judgment being taken out the defendants have put in appearance and have filed their reply.

(2.) IN the particulars of claim annexed to the plaint, the plaintiff has prayed for the value of excess goods supplied by the plaintiff. Interest thereon at 18% per annum. Further interest by way of penalty at 24% per annum on certain amount as also the amounts paid by way of Sales Tax. The defendants have filed their reply. It is their contention that the suit as filed does not disclose any cause of action against the defendants nor is maintainable as a Summary Suit under the provisions of Order XXXVII of the Code of Civil Procedure.

(3.) THE plaintiff contends that the purchase order by the defendants, the Invoices and the acceptance of the material constitute an agreement and consequently the suit as filed is maintainable as a Summary Suit. In so far as the Sales-tax is concerned, learned Counsel has relied on the provisions of section 8 of the Central Sales Tax Act. It is his contention that in terms of the said section a Dealer has to pay Sales-tax on his turn over. In terms of Rule 9-C of the Central Sales-tax (Bombay) Rules, 1957 a Dealer is prohibited from collecting from a Purchaser any tax which he himself has not to pay to the Government. Reading section 8 of the Central Sales-tax Act with Rule 9-C of the Central Sales-Tax (Bombay) Rules it is his contention that such a registered Dealer is entitled to claim from the purchaser the Sales-tax dues. It is his further contention that though there is no specific term in the contract it has to be read as implied term in view of the aforesaid provisions of the Central Sales-tax Act and the Rules framed thereunder. In so far as the charges for excess payment are concerned it is pointed out that from the purchase order quantities were approximate quantities. Merely because the weight was extra would not mean that the defendant is not liable to pay for the said extra weight as the items supplied were of the price as sought for by the defendants. In these circumstances it is contended that the suit is maintainable as a Summary Suit. In so far as interest is concerned, it is pointed out that in terms of the Invoices itself interest is payable at 24% per annum and the other interest is on account of delay in paying Central Sales-tax for want of C-Form by the defendants which he has agreed to in terms of the Purchase Orders.