PORT ENGINEERING WORKS LTD Vs. COMMERCIAL TAX OFFICER CHINA BAZAR CHARGE
LAWS(CAL)-1961-9-3
HIGH COURT OF CALCUTTA
Decided on September 18,1961

PORT ENGINEERING WORKS LTD Appellant
VERSUS
COMMERCIAL TAX OFFICER CHINA BAZAR CHARGE Respondents

JUDGEMENT

- (1.) THE petitioner Company carries on business amongst other businesses as repairers of inland steamers, boats and flats. The Company is a dealer registered under the Bengal Finances (Sales Tax) Act, 1941 (hereinafter referred to as the Act ).
(2.) FOR the year ending December 31, 1955, the Company filed a return, in form IIIA, of Sales Tax payable for the year. In the said return the petitioner showed its gross turnover at Rs. 24,17,551 and after making deductions there from, as under section 5 (2) (a) and under section 5 (2) (b) of the Act, showed the amount on which tax was payable at Rs. 1,62,961. On the amount, calculated as aforesaid, the company paid a sum of Rs. 7638/13/-, as the tax payable by it.
(3.) THE gross turn-over shown by the petitioner, in the return, did not include a total sum of Rs. 12,69,388-10-0 realised or billed for, during the year of assessment, as consideration for several agreements for repair of inland steamers, boats and flats and a sum of Rs. 59,501/11/8 realised on account of sales tax thereon. The stand taken by the petitioner company was that the total lump sum consideration for the several works contract was not sale price and, therefore, that sum was not required to be included in the aggregate which made up the gross turnover. The further stand taken up by the petitioner company was that the sum of Rs. 59,501/3/6 realised on account of sales tax was liable to be refunded by the petitioner company to the several parties, from whom the same had been realised because sales tax was not chargeable on the consideration for agreements for repair of inland steamers, boats and flats.;


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