MUKESH TRADING CO Vs. COMMISSIONER SALES TAX

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution of India, the petitioner has challenged the correctness of the order dated 10th December, 1973, passed by the Assistant Sales Tax Officer, Gwalior and the order dated 7th April, 1975, passed in revision by the Divisional Deputy Commissioner, Sales Tax, Gwalior, upholding the order of the Assistant Sales Tax Officer dated 10th December, 1973.

(2.) THE petitioner deals in industrial gas. While assessing his turnover for the year 1970-71, i. e. , from 1st April, 1970, to 31st March, 1971, the Assistant Sales Tax Officer (who will hereinafter be referred to as the assessing authority) included Rs. 8,223. 30 purporting to be the forwarding charges in the sale price and charged sales tax over it. The petitioner had a right to go in appeal against this order under Section 38 (1) of the M. P. General Sales Tax Act, 1958 (which will hereinafter be referred to as the Act ). He had also the remedy by way of second appeal to the Board of Revenue under Section 38 (2) of the Act and, if he was aggrieved by the order passed by the Board, he could have got the case stated to this court under Section 44 of the Act, but he chose an easy remedy of filing revision before the Divisional Deputy Commissioner under Section 39 of the Act. The Divisional Deputy Commissioner, as already stated above, upheld the order of the assessing authority. Aggrieved by the order of the Divisional Deputy Commissioner upholding the order of the assessing authority, the petitioner has approached this court under Article 226 of the Constitution.

(3.) LEARNED counsel for the petitioner has urged that forwarding charges do not form part of sale price as defined in the Act and, consequently, no sales tax should have been levied on them. In support of his contention, he has relied on Commissioner of Sales Tax, M. P. v. Maratha Syndicate Pvt. Ltd. 1970 R. N. 235, Birla Jute Manufacturing Co. Ltd. v. Commissioner of Sales Tax, M. P. [1972] 29 S. T. C. 639 and Commissioner of Sales Tax, M. P. v. Gill and Company Ltd. 1974 R. N. 1.