PERTECH COMPUTERS LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against order dated 29.6.1996 in Appeal No. 68/92 -93 on the file of A.D.C.(CT), Secunderabad Division, Hyderabad arising out of assessment order dated 30.12.1991 in Asst. No. 323/89 -90/CST on the file of C.T.O., General Bazaar Circle, Hyderabad. The disputed turnover is Rs. 1,70,358/ - involving a tax of Rs. 3,407.16. For the assessment year 1989 -90, the assessing authority determined the net turnover for tax purposes as Rs. 1,85,80,360/ -. The appellant was des -patching the machines to his own branches from where they are installed at the customer's premises by the service engineers of the appellant. In some places octroi charges were paid by the appellant at the time of clearing the machines from the air cargo. That turnover relating to octroi charges paid by the appellant during the asst. year came to Rs. 1,70,350/ -. According to the Revenue, the above sum forms part of the sale price. On the other hand, it is the contention of the appellant that the above sum is in the nature of post sale recoverable expenses and they cannot be included in the turnover of the company. The assessing authority did not accept the contention of the appellant. Similarly, in the appeal against the assessment order, A.D.C. also did not accept the contention advanced on behalf of the appellant. Aggrieved by the order of A.D.C. the appellant preferred this appeal before this Tribunal.

(2.) THE point for consideration in the appeal is whether order of A.D.C. in appeal is liable to be set -aside?

(3.) AS per the grounds of appeal, any amount paid by the appellant for the sake of convenience and recovered from the purchases would be post sale expenses not exigible to tax. Further, according to the appellant, 'sale price' defined in Sec. 2(h) of CST Act expressly excludes cost of freight, delivery and installation charges, if the same are charged separately and octroi duty paid at the entry point of various State Municipalities in any event would be forming part of delivery cost and as such would be eligible for exemption from tax. Section 2(h) of CST Act defines "sale Price" as follows: