84/72 73 for the period 1 8 71 to 31 7 72 and R. No.
The assessee, proceeding on the basis that the amount of freight did number form part of the sale price and was number includible in the taxable turnover did number show it in the returns, but the Assistant Commissioner of Sales Tax took the view that having regard to the provisions of the Cement Control Order, the amount of freight formed part of the sale price and was includible in the taxable turnover of the assessee and on this view, he passed two orders of assessment, one under the Central Sales Tax Act, 1956 and the other under the Madhya Pradesh General Sales Tax Act, 1958, including the amount of freight in the taxable turnover of the assessee and levying tax upon it and also imposing heavy penalty on the assessee on the ground that the assessee had failed to disclose in its returns the amount of freight as forming part of the taxable turnover.
Appeals by Special Leave from the Judgment and Order dated 28 12 77 of the Assistant Commissioner of Sales Tax, Indore in R. C. No.
K. Gambhir for the Respondent.
191 193 of 1978.
Since the question as to whether in respect of transactions of sale of cement governed by the Cement Control Order, the amount of freight formed part of the sale price and was liable to be included in the taxable turnover of the dealer, was pending decision in this Court, the assessee 1101 preferred appeals directly to this Court by special leave against the Orders of assessment made by the Assistant Commissioner of Sales Tax.
The same position obtained also in regard to the assessment period 15th November, 1971 to 31st July, 1972 and a similar order bringing the amount of freight to tax and imposing heavy penalty on the assessee was passed by the Assistant Commissioner of Sales Tax under the Madhya Pradesh General Sales Tax Act, 1958.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
S. Desai CA 191/78 , B. R. Agarwala and P. G. Gokhale for the Appellant.
The assessee effected certain transactions of sale of cement in accordance with the provisions of the Cement Control Order during the assessment period Ist August, 1971 to 31st July, 1972 and in the companyrse of the assessment of the assessee to sales tax under the Madhya Pradesh General Sales Tax Act, 1958 and Central Sales Tax Act, 1956, a question arose whether the amount of freight which was included in the free on rail destination railway station price, but which was paid by the purchasers and hence deducted from the price shown in the invoices sent to the purchasers, formed part of the sale price so as to be liable to be included in the taxable turnover of the assessee.
IND I/1344 Central in Case No.
The assessee challenged in the appeals number only the inclusion of the amount of freight in the taxable turnover of the assessee, but also the imposition of penalty for number showing the amount of freight as forming part of the taxable turnover in the returns.
118/72 73 for the period 1 8 71 to 31 7 72, R. C. No.
IND/1/X XIX/5 in case No.
118/72 73 for the period 15 11 71 to 31 7 72 and rectified by orders dated 7 1 1978.
IND I X XIX/5 TOT 1100 in Case No.
The Judgment of the Court was delivered by BHAGWATI, J. These appeals by special leave raise companymon questions of law and it would be companyvenient to dispose them of by a single judgment.
