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1979 Supreme(SC) 462
SUPREME COURT OF INDIA
P.N. BHAGWATI AND R.S. PATHAK, JJ.
The Cement Marketing Co. of India Ltd., Appellant
Versus
The Commissioner of Commercial Taxes, Karnataka, Respondent.
Civil Appeal No. 2635/1977
Decided on 30-10-1979.
Headnote:
Central Sales Tax Act, 1956 - Section 2 (h) - Transactions Of Sale Of Cement - Sale Of Cement -Entered Into By Assessee With Purchasers - Decision Completely Covers Present Case - Freight Formed Part Of Sale Price - Question is no longer res integra and it stands concluded by a recent decision given by this Court - It has been held by this Court in that case that by reason of provisions of Cement Control Order which governed transactions of sale of cement entered into by assessee with purchasers amount of freight formed part of "sale price" within meaning of first part of definition of that term in Section 2 (h) of Central Sales Tax Act 1956 and was includible in turnover of assessee - This decision completely covers present case and hence we must hold that High Court was right in taking view that amount of freight formed part of sale price and was rightly included in taxable turnover of appellant – Held, Court may point out that observations made by this Court in order allowing Review Application of assessee in Sugar Mills case (supra) are equally applicable in present case - State will do what is fair and just to appellant as indicated by this court in that order - Appeal Dismissed.
JUDGMENT
BHAGWATI, J. :—This appeal by special leave raises the question whether in respect of transactions of sale of cement effected by the appellant under the provisions of the Cement Control Order, the amount of freight formed part of the "sale price" within the meaning of the definition of that term in Section 2 (h) of the Central Sales Tax Act, 1956 and was includible in the taxable turnover of the appellant.
2. This question is no longer res integra and it stands concluded by a recent decision given by this Court in Hindustan Sugar Mills v. State of Rajasthan (1979) 1 SCR 276. It has been held by this Court in that case that by reason of the provisions of the Cement Control Order which governed the transactions of sale of cement entered into by the assessee with the purchasers, the amount of freight formed part of the "sale price" within the meaning of the first part of the definition of that term in Section 2 (h) of the Central Sales Tax Act 1956 and was includible in the turnover of the assessee. This decision completely covers the present case and hence we must hold that the High Court was right in taking the view that the amount of freight formed part of the sale price and was rightly included in the taxable turnover of the appellant.
3. We may point out that the observations made by this Court in the order dated 31st August 1979 allowing the Review Application of the assessee in Hindustan Sugar Mills case (supra) are equally applicable in the present case. The State will do what is fair and just to the appellant as indicated by this court in that order.
4. We accordingly reject the appeal and confirm the judgment of the Karnataka High Court at Banglore.
5. There will be no order as to costs of the appeal.
Appeal dismissed.
For Citation: AIR 1980 SC 952
