VIMALCHAND PRAKASHCHAND Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) IN this reference under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958, read with Section 9 of the Central Sales Tax Act, 1956, at the instance of the assessee, M/s. Vimalchand Prakashchand, Sarafa, Ujjain, the questions propounded by the Sales Tax Tribunal for our decision are

(2.) THE assessee is a dealer in cotton. During the period from 1st April, 1959, to 31st October, 1959, it sold, in the course of inter-State trade, compressed cotton in bales covered with hessian cloth and fastened with iron hoops. In the turnover of these inter-State sale transactions, the assessing officer included in the turnover taxable under the Central Sales Tax Act, 1956, amounts received by the assessee from the purchasers by way of Central sales tax, adat, dalali, bank commission, charity and insurance. The total amount thus included in the turnover was Rs. 19,514. 74. The assessee's contention that the said amounts should not have been included in the turnover of inter-State sales was rejected by the assessing officer. It was also negatived in first appeal by the Deputy Commissioner of Sales Tax, Indore, as well as by the Sales Tax Tribunal in second appeal.

(3.) THE assessee also contended that there was no sale by it to the purchasers of hessian and iron hoops when it sold to them compressed cotton in bales covered with hessian and fastened with iron hoops; and that, therefore, the estimated price of the hessian cloth and iron hoops should have been excluded from the taxable turnover. This objection of the assessee was also disallowed by the assessing officer and by the appellate authorities.