Vineet Kothari, J. - (1.) THESE two revision petitions filed by the Revenue involve the question of law as to levy of sales tax on the amount of freight charged by the respondent -assessee from its purchasers by raising debit notes for the amount of freight on the purchasers of cement.
(2.) THE AA imposed tax on such amount of freight holding it to be a contract 'F.O.R. destination' and, therefore, held that mere raising of a Debit Note was a device to avoid the payment of tax on such amount of freight and, therefore, such additional tax was imposed by the AA. The first appeal filed by the assessee also came to be rejected by the learned Dy. Commissioner (Appeal) by orders dated 28.2.1994 and 6.9.1995 for the two assessment period 1988 -89 and 1989 -90. The assessee being aggrieved of these orders filed second appeal before the Raj. Tax Board which allowed the appeals of the assessee by the impugned order dated 27.1.1997 and held that no tax could be imposed under the provisions of Section 2(h) defining sale price under the provisions of CST Act, 1956. The said definition of Section 2(h) of the CST Act defines the term as under: 2(h). "sale price" means the amount payable to a dealer as consideration for sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery or the cost of installation in cases where such cost is separately charged.
(3.) THE learned Tax Board relied upon the decision of the Hon'ble Supreme Court in the case of Hindustan Sugar Mills Ltd. v. State of Rajasthan, (1979) 43 STC 13 while allowing the appeal of the assessee.;