Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Andhra Pradesh Sales Tax Act 1957-Sections 2(s) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Sales Tax:Andhra Pradesh Sales Tax Act, 1957-Sections 2(s), 6-A-Turnover - Transportation charges and commission paid t~ ·agent for supplying raw material-Inclusion of, in turnover-Held, these expenses were incurred to procure raw material and required for completing the sale transaction and therefore form part of turnover. Respondent-assessee, a manufacturer of paper, purchased raw material from unregistered dealers through agents on contract rates which besides cost of raw material included transportation charges and agents' commission. The assessee sought to pay sales tax on cost of raw material only. But the Assessing Authority assessed sales tax on total turnover which included transportation charges and the commission paid to agents. Assessee challenged the assessment order unsuccessfully before the Appellate Commissioner. However, the Appellate Tribunal and the High Court held in favour of the assessee on the ground that transportation cost and agents' commission were incurred by assessee subsequent to purchase of raw materials and such charges would not represent the sale consideration. In the appeal filed by Revenue, it was contended that transportation charges and commission paid to agent together with cost of raw material constituted 'turnover' under Section 2(s) of the Andhra Pradesh Sales Tax Act, 1957 and is liable to sales tax under Section 6-A thereof. |
Judge | Hon'ble Dr. Justice A.R. Lakshmanan |
Neutral Citation | 2005 INSC 1 |
Petitioner | State Of Andhra Pradesh |
Respondent | M/s. A.p. Paper Mills Ltd. |
SCR | [2005] 1 S.C.R. 7 |
Judgement Date | 2005-01-03 |
Case Number | 3750 |
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