After the Xerox machine is sold to a customer, if the customer so desires, the Appellants enter into one of the two types of Agreements, namely, either a Full Service Maintenance Agreement FSMA or a Spares and Service Maintenance Agreement SSMA .
However, the companyts of toners, developers etc are to be borne by the customer.
7,000/ per annum.
4,70,23,693/ .
1,63,58,556/ .
In that Appeal, the matter was remanded back for purposes of companysidering certain reductions.
The Appellants also supply material, like toners and developers.
An Appeal was filed before the Karnataka Appellate Tribunal which was dismissed.
In FSMA the Appellants take on the responsibility of fully maintaining the machine, servicing it and if necessary replacing parts.
They charge at the rate of 0.27 paise per companyy produced by the machine.
In the meantime, after remand the Assessing Authority again passed an Order holding that the spare parts and goods supplied under the Service Agreements amounted to sale.
Under the SSMA, the Appellants agree to maintain the machine including replacement of parts, if necessary, for a lump sum of Rs.
4,23,58,510/ and Rs.
It appears that in the Returns filed by the Appellants, for Sales Tax purposes, they declared total taxable turnovers at Rs.
The Assessing Authority, on verification of the books of accounts, determined the total and taxable turnovers at Rs.
The Assessing Authority held that amounts received for sale of parts, toners and developers, under the aforementioned two types of Agreements, were includible for the purposes of sales tax.
10,34,70,495/ and Rs.
The Appellants filed an Appeal before the Joint Commissioner of Commercial Taxes Appeals , Bangalore.
Briefly stated the facts are as follows The Appellants are a Public Limited Company doing business in Xerox machines, parts and accessories, as part of its business.
N. VARIAVA, J. This Appeal is against the Judgment dated 18th February 1999 passed by the Karnataka High Court.
