J.K. Ranka, J. - (1.) THIS revision petition has been filed by the petitioner department, under Section 86 of the Rajasthan Tax Act, 1994 (In short "The Act") against the order dated 2.4.2007 passed by the Rajasthan Sales Tax Board, Ajmer (in short "The Board") in Appeal No. 1523/2006 whereby the Tax Board rejected the appeal filed by the petitioner department. The brief facts of the case are that the respondent is a limited Company and is in the business of Refrigerators. As per separate contract of warranty the respondent charged "Optional Service Charges" Rs. 175/ - per refrigerator from the consumers for providing after sale services in respect of refrigerator sold by the respondent, this Scheme was only optional and not necessarily every customer used to agree to this. It was claimed by the respondent -assessee that "optional Service Charges" charged by the respondent is not a part of the sale price and accordingly, no sales tax could be levied treating it as part of and including in the sale price however, the Assessing Officer, (in short "The AO") was not satisfied with the explanation so offered by the respondent -assessee and was of the view that since, the optional service charge is part of sale price and it has to be included in the sale price, accordingly, an amount of Rs. 45,28,232/ - was treated as sale and accordingly levied tax @ 16% on it which came to Rs. 7,24,517/ - interest and penalty was also levied on it.
(2.) DIS -satisfied with the order passed by the AO the respondent Company preferred an appeal before the Deputy Commissioner (Appeals), Jaipur, (In short (DC (A)), who after going through the order passed by the AO and also in the light of the Judgment in the case of respondent -assessee, itself, of the Tax Board, partly allowed the appeal of the appellant and directed to reduce optional service charges from sales and consequently directed to delete interest and penalty. Being dis -satisfied with the order of DC (A), the petitioner -department, carried the matter in appeal before the Tax Board, who vide order dated 2.4.2007 rejected the appeal of the petitioner department. Accordingly, it was held that 'Optional Service Charge' is not part of the sale price.
(3.) HENCE , this revision petition.;