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Nuchem Plastics Ltd. Vs. the State of Haryana - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtPunjab and Haryana High Court
Decided On
Case NumberGeneral Sales Tax Reference No. 14 of 1975
Judge
Reported in[1977]40STC70(P& H)
AppellantNuchem Plastics Ltd.
RespondentThe State of Haryana
Appellant Advocate D.N. Verma and; R.N. Narula, Advs.
Respondent Advocate H.N. Mehtani, Senior Deputy Adv.-General
Cases ReferredHyderabad Asbestos Cement Products Ltd. v. State of Andhra Pradesh
Excerpt:
- sections 100-a [as inserted by act 22 of 2002], 110 & 104 & letters patent, 1865, clause 10: [dr. b.s. chauhan, cj, l. mohapatra & a.s. naidu, jj] letters patent appeal order of single judge of high court passed while deciding matters filed under order 43, rule1 of c.p.c., - held, after introduction of section 110a in the c.p.c., by 2002 amendment act, no letters patent appeal is maintainable against judgment/order/decree passed by a single judge of a high court. a right of appeal, even though a vested one, can be taken away by law. it is pertinent to note that section 100-a introduced by 2002 amendment of the code starts with a non obstante clause. the purpose of such clause is to give the enacting part of an overriding effect in the case of a conflict with laws mentioned with the..........it is open to the sales tax authorities to treat railway freight as forming part of the price of goods sold and levy tax thereon ?(ii) whether, on the facts and in the circumstances of the petitioner's case, when railway freight is admittedly not made a part of the price of the goods sold, it is open to the sales tax authorities to levy tax on the railway freight ?(iii) whether, on the facts and in the circumstances of the petitioner's case, the petitioner was bound to quote and charge price inclusive of railway freight ?(iv) whether, in view of the course, conduct and procedure of the sale transactions and from the conduct of the petitioners and its customers, the sales tax authorities should have inferred an agreement between the petitioner and its customers to the effect that the.....
Judgment:

M.R. Sharma, J.

1. The Sales Tax Tribunal has referred the following five questions to us for our opinion under Section 42 of the Haryana General Sales Tax Act, 1973.

(i) Whether, on the facts and in the circumstances of the petitioner's case, when the price was quoted f.o.r. destination but the railway freight was always paid by the customers, it is open to the sales tax authorities to treat railway freight as forming part of the price of goods sold and levy tax thereon ?

(ii) Whether, on the facts and in the circumstances of the petitioner's case, when railway freight is admittedly not made a part of the price of the goods sold, it is open to the sales tax authorities to levy tax on the railway freight ?

(iii) Whether, on the facts and in the circumstances of the petitioner's case, the petitioner was bound to quote and charge price inclusive of railway freight ?

(iv) Whether, in view of the course, conduct and procedure of the sale transactions and from the conduct of the petitioners and its customers, the sales tax authorities should have inferred an agreement between the petitioner and its customers to the effect that the latter were bound to pay the railway freight ?

(v) Whether, in view of the facts of the petitioner's case, the payment of the railway freight by the customers amounted to an implied stipulation that the railway freight would be paid by the customers ?

2. The manner in which question No. (ii) has been framed shows that, admittedly railway freight is not made part of the price of the goods sold. Obviously, therefore, the sales tax authorities could not, with any justification, impose sales tax on amount spent as railway freight because sales tax is to be imposed on the price of the goods sold. The view which we have taken finds further support from a judgment of their Lordships of the Supreme Court in Hyderabad Asbestos Cement Products Ltd. v. State of Andhra Pradesh [1969] 24 S.T.C. 487 (S.C.).

3. We, accordingly, answer all the questions in favour of the assessee and against the revenue. No costs.


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