ASSTT COMMISSIONER COMMERCIAL TAXES SPECIAL CIRCLE BHILWARA Vs. SRI PIPES NOW A-INFRA STRUCTURE BHILWARA

JUDGEMENT

(1.) THE instant revision has been filed against the order of the Division Bench of the Rajasthan Tax Board, Ajmer, dated 24. 7. 2001, by which it has held that the inspection charges paid by the assessee but subsequently reimbursed by the purchaser, shall not form part of the sale price.

(2.) THE facts and circumstances giving rise to this case are that the respondent-assessee had entered into an agreement with the public Health & Engineering Department, Rajasthan, for the sale of A. C. Cement Pressure Pipes and inspection charges had to be paid by the purchaser subsequently. THE Assessing Authority, when made the assessment for the years 1987-88, 1990-91 and 1991- 92, held that the said inspection charges formed part of the turn over being an integral part of the sale price and the tax was imposed. Subsequently, appeals were filed, which had been accepted by the Appellate Authority vide judgment and order dated July 15/16, 1998, against which further appeals were preferred before the Rajasthan Tax Board, which have been rejected vide impugned judgment and order dated 24. 7. 2001. Hence this revision.

(3.) THE sale price will take within its ambit the excise duty etc. being the component of the sale price and in such an eventuality, the dealer-assessee does not have any option except to reimburse the producer for the excise duty already paid by him on the manufacture of the goods, but it would be a part of the sale price because it forms a component of the consideration payable by the purchaser to the dealer. It is only as part of the consideration for sale of the goods that the amount representing excise duty would be payable by the purchaser. THE Court further observed as under:- " THEre is no other manner of liability statutory or otherwise, under which the purchaser would be liable to pay the amount of excise duty to the dealer. . . . but as the freight under the Control Order was to be paid by the seller, it had to form the part of the sale price. "