Remanded

M/S R.R. Heavy Engineering Co. Pvt. Ltd. v. Commissioner of Trade Tax U.P. Lucknow

Allahabad HC16 Nov 2018STRE/290/2005

Case brief

AI extract

What is this about?

This was a trade tax revision where the Tribunal failed to address the assessee's specific contention that the agreement lacked a clause for freight charges. The High Court set aside the Tribunal's finding on freight inclusion and remitted the matter to record a fresh finding based on available evidence.

What did the court decide?

The finding regarding the inclusion of freight charges in the sale turnover for AY 2000-01 was set aside and the matter remitted to the Tribunal to record a fresh finding within three months.

M/S R.R. Heavy Engineering Co. Pvt. Ltd. Vs Commissioner of Trade Tax U.P. Lucknow — Allahabad HC (2018) — LawSathi Research

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Court No. - 7

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Case :- SALES/TRADE TAX REVISION No. - 290 of 2005

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Applicant :- M/S R.R. Heavy Engineering Co Pvt Ltd Opposite Party :- Commissioner Of Trade Tax, U.P. Lucknow Counsel for Applicant :- Arun Kumar Gupta,N.C. Gupta Counsel for Opposite Party :- C.S.C.

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Hon'ble Saumitra Dayal Singh,J.

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The present revision has been filed by the assesee for the assessment year 2001-02 (Central). The revision has been heard on the following question of law:-

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"WHETHER, the Trade Tax Tribunal as well as authority below were justified to declare the freight is the part and parcel of the taxable turn over, despite the freight has separately charged by the revisionist?"

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With respect to the above question, it is seen that the assessing authority has recorded a categorical finding that under the agreement entered into between the assessee and the purchaser, the obligation of the assessee was to make supply of certain machinery wherein freight was to be included in the sale price. The same finding had been reiterated by first appeal authority. Before the Tribunal by way of ground No.F raised in the memo of the appeal (as has been filed with the present revision application), Assessee had disputed the factual findings recorded by the assessing authority or the first appeal authority.

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The assessee thus appears to have submitted that under the agreement in question, there was no clause to include the freight as part of the sale turnover. While considering the aforesaid issue the Tribunal appears to have only observed that the assessing authority and the appeal authority have not erred in including the freight charges in the sale turnover relying on certain decision of this Court, however, there is no discussion and no finding as to the specific factual ground raised by the assessee that there was no such clause in the agreement.

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In exercise of the revisional jurisdiction of this court it may not be examined whether as a fact there exists any clause to include the freight charges in the sale turnover.

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While learned Standing Counsel has objected to the submissions advanced by the learned counsel for the assessee that no such pleading appears to have been raised before the Tribunal, it is difficult to adjudicate the objection raised by the learned Standing Counsel since the Tribunal has not dealt with the issue raised by the assessee.

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Therefore, the present revision is disposed of on the following terms:-

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(i) finding of the Tribunal with respect to inclusion of freight charges in the sale turnover of the assessee for the assesment year 2000-01 (Central) is set aside while the remaining part of the order shall remain maintained.

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(ii) the matter is thus remitted to the Tribunal on the limited aspect to record a fresh finding on the issue of the inclusion of the freight charges

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on the sale turnover on the basis of evidence and material that is available on record.

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(iii) a fresh order may be passed by the Tribunal as expeditiously as possible, preferably within a period of three months from the date of production of a certified copy of this order. The question of law raised are answered accordingly.

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Order Date :- 16.11.2018 Gaurav Pal

M/S R.R. Heavy Engineering Co. Pvt. Ltd. v. Commissioner of Trade Tax U.P. Lucknow

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M/S R.R. Heavy Engineering Co. Pvt. Ltd. v. Commissioner of Trade Tax U.P. Lucknow

Case brief

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