From the Judgment and order dated 10 9 1976 of the Rajasthan High Court in D. B. Civil Writ Petition No.
The Control order was issued by the Central Government in exercise of the powers companyferred by sections 18G and 25 of the Industries Development and Regulation Act, 1951.
214.65 per metric tonne free on rail destination railway station plus packing charges and excise duty.
During these assessment years the sale of cement was companytrolled under the Cement Control order, l 967 hereinafter referred to as the Control order .
These companytracts were on the terms and companyditions set out in the form of General terms and companyditions of supply adopted by the assessee.
Clause 7 of the Control order provided that the ex factory prices admissible to the producer for the different varieties of cement shall be as specified in the Schedule and the Schedule, as it stood at the material time, specified a retention price of Rs.
1122 of 1976 J. Sorabjee, L. N. Sinha, S. M. Jain, S. C. Bhandari and B. B. Singh for the respondents in both the appeals.
161.40 per metric tonne for cement manufactured by all producers other than those mentioned at Items 1 to 5, which included the assessee.
S. Nariman, Y. S. Chitale A. K. Srivastava, V. Bhasin, C. V. Francis and Vineet Kumar for the appellant in A. No.
1122 of 1976.
The assessee did number charge in the invoices sales tax on the amount of railway freight.
The assessee owns a cement factory known as Udaipur Cement Works at Udaipur in Rajasthan and it manufactures and sells cement to purchasers both inside and outside Rajasthan.
The maximum price at which a producer companyld sell cement was prescribed in clause 8 which said that numberproducer shall sell any other variety of cement at a price exceeding Rs.
The question arose in the assessment of the assessee to sales tax under the Rajasthan Sales Tax Act, 1954 and the Central Sales Tax Act, 1956 as to whether the amount of freight deducted from the free on rail destination railway station price hereinafter for the sake of brevity referred to as F.O.R destination price in the invoices made out by the assessee and paid by the purchasers formed part of the sale price within the meaning of the definition of that term in section 2 p of Rajasthan Sales Tax Act, 1954 and section 2 h of the Central Sales Tax Act, 1956.
214.65 per metric tonne free on rail destination railway station plus the excise duty paid thereon.
1122 of 1976 The Judgment of the Court was delivered by BHAGWATI, J. These appeals by special leave raise an interesting question of law relating to the applicability of the definition of sale price in section 2 p of the Rajasthan Sales Tax Act, 1954 and 2 h of Central Sales Tax Act, 1956.
The proviso to Clause 8 provided that in the case of packed cement, there shall be added to this price such charges as may be fixed by the Central Government in respect of packing in jute bags or in any other companytainers The Explanation to this clause clarified that for the purpose of the Control order, the expression free on rail destination railway station means the price including the companyt of transport by the cheapest mode except where any other mode of transport has been specified by the Central Government under Clause 4 at the destination point.
This would leave, with the producer the retention price together with the selling agency companymission, packing charges and excise duty and also reimburse him the actual freight paid by him.
CIVIL APPELLATE JUDRISDICTION Civil Appeal No.
1122 of 1976 which was argued as the main appeal before us The appellant in this appeal is Hindustan Sugar Mills Ltd. hereinafter referred to as the assessee .
Anantha Babu and A. Subba Rao for the intervener in A. No.
During The relevant assessment years, the assessee entered into diverse companytracts of sale of cement with purchasers at the price of Rs.
Clause 9 and 11 provided for the creation of a Cement Regulation Account in the following terms .
The question is whether in sales of cement effected under the Cement Control order 1967, the amount of freight forms part of the sale price so as to be exigible to Sales Tax under these Acts.
1122 of 1976.
The appeal relates to assessment of the assessee to sales tax under the Rajasthan Sales Tax Act, 1954 and the Central Sales Tax Act 1956 for the assessment years 1971 72 and 1972 73.
M. Tarkunde, V. K. Shinghal, N. N. Goswamy and Arvind Minocha for the appellant in C.A. No.
1080 of 1976.
