Penalty was quashed as Revenue could not treat sale price as ‘Tax Inclusive’ without Proof

State of Gujarat Vs Hindustan Coca Cola Beverages Pvt. Ltd. (Gujarat High Court)

Conclusion: Penalty of Rs. 25.53 Cr. on Hindustan Coca-Cola was quashed as assessee had not collected any amount by way of sales tax during the exemption period, and the Revenue’s assumption of implicit tax collection was unsustainable.

Held: Assessee-company (“Respondent”) had obtained a sales tax exemption certificate under section 49(2) of the Sales Tax Act and availed sales tax exemption on the sale of manufactured products at its plant situate

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