Law: Sales Tax Act, (III of 1951)

Section: 17,16

Sales-tax Act, 1951 -- Section 2(16) (before amendment in 1957) Sale price -- Whether includes transportation charges -- Held yes -- "Servicing", meaning of -- JUDGMENT The judgment of the court was delivered by WAHIDUDDIN AHMED J.(now C. j.).--This reference is under Section 17 of the Sales tax Act, 1951 in which the following question of law has been referred for the opinion of this Court:-- "Whether on the facts and circumstances of the case the word 'Servicing' used in the definition of 'sale price' as given in sub-section 16, before its Amendment by Finance Act, 1957, includes the amount realised for transportation of cement from assessee's factory to the purchaser's godown at Karachi, so as to make the amount part of 'sale price'?" It arises in the following circumstances. The applicant is engaged in the manufacture of cement at Karachi. For the charge year 1952-53 corresponding to the financial year ending in March, 1953, the Sales-tax Officer added to the taxable turnover for the period in question a sum of Rs. 1,48,193 recovered as transportation charges on the ground that on the terms "servicing mentioned in the definition of "sale price" of Sales-tax Act this item was rightly treated as included and part of the sale price. The assessee challenged this order before the Income-tax Appellate Tribunal, Karachi who by its order dated the 17th of May, 1960 upheld the view taken by the Department on the following observations:-- "The point for consideration is whether the term 'servicing' included the amount relalised for transportation of cement from the factory to its destination. It has been pointed out that 'servicing' according to the Dictionary meaning implied expert advice of assistance to the customers after the sale of goods. The services rendered by agents of motor-vehicles to the new car-owners after the purchase for a few months is cited as an instance. The Departmental Representative on the other hand contends that under the definition given above 'servicing' in this case included transportation expenses incurred by the assessee and realised from the customers. Much depends on the contract entered into at the time of sale to determine the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492