DYNAMIC CABLES PRIVATE LIMITED Vs. ASSTT. COMMISSIONER

JUDGEMENT

(1.) With consent of learned counsel for the parties, the instant Sales Tax Revision Petitions (for short "STRs") were taken up for final disposal.

(2.) These STRs were admitted vide order dtd. 30/01/2023 on the following questions of law:-

(3.) It is submitted on behalf of the petitioner-assessee that the petitioner-assessee is carrying on business of manufacturing and sale of PVC Cables, ACSR Conductors and other kinds of cables; and majority of their sales are to the State Electricity Boards across India who purchased the material for generation, transmission and distribution of electric power. It is further submitted that regular assessment was duly carried out under Ss. 23/24 of the Rajasthan Value Added Tax Act, 2003 (for short, "RVAT Act") read with Sec. 9 of the Central Sales Tax Act, 1956 (for short, "CST Act") for the year under consideration. While making regular assessments, the element of freight which was collected separately and not included in the assessor's value for consideration of the purchase order was duly approved. The cause of action arose when a survey was conducted by the Anti Evasion Team on 22/05/2012 and there was a change in opinion of the said authorities, and it was determined that even though the freight and insurance charges are collected separately, but as the same are included in the price charged from the buyer and the delivery is F.O.R. destination, the same is required to be taxed. In the light of said observation, assessment order dtd. 01/03/2013 was passed and due amount of tax, interest and penalty was imposed under Sec. 25, 55, 61 of the RVAT Act read with Sec. 9 of the CST Act.