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Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreA voluntary organisation established on 6th July 1949, BCAS has presently more than 9,000 members from all over the country. BCAS is a principle-centered and learning-oriented organisation promoting quality service and excellence in the profession of Chartered Accountancy.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
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Facts
The assesse manufacturer of plastic components did not charge excise duty on certain transaction of sales on a bonafide belief that it is not payable. However, later on paid excise duty after taking licence under Central Excise provisions but did not collected the same from the buyers. The department based on proceedings from the excise authority, levied tax on excise duty paid by the dealer for past transactions although not collected from buyers. On appeal tribunal allowed appeal against which the department filed revision petition before the Madras High Court.
Held
As per definition of sale price contained in section 2(h) of the CST Act, what is charged as consideration alone could be considered as turnover of sales. Admittedly, the fact is, on the date of sale, the petitioner had collected as sale consideration and did not collect excise duty paid by it from the buyers and no evidence was available subsequent to payment of excise duty whether the portion of such payment had been passed over to the customer as a part of consideration. Therefore, the excise duty paid by the dealer and not collected from the customer cannot form part of sales turnover for levy of tax. Accordingly, the High Court dismissed the revision petition filed by the department and confirmed the order of the Tribunal.