Case Law Details
State of Gujarat Vs Advanced Systek Private Limited (Gujarat High Court)
It appears that when the assessee has sold the goods on the price, which is inclusive of tax, the turnover is to be calculated as per the formula provided in Section 8A of the CST. In the facts of the case the rate of CST applicable for the goods supplied by the respondent-assessee is 4%. Therefore, 4% tax is required to be applied on the turnover as calculated under Section 8A of the CST Act. As observed above, the respondent-assessee deposited the CST at the rate of 10%/12.5% by making reverse working of the turnover under Section 8A of the CST Act. The correct amount of tax payable would be therefore, much less than what the respondent-assessee has deposited.
This has resulted into the excess amount of tax deposited by the respondent-assessee amounting to Rs. Rs.1,81,49,641/-.
Moreover, on perusal of the facts on record and as per the findings of fact given by the Tribunal, it cannot be said that that the respondent-assessee has collected the excess amount of CST from its buyer/receiver of the goods. As per the terms of the contract the respondent- assessee was issuing running bills at a fixed price but prepared the commercial invoices for the purpose of payment of excise duty and the CST, but ultimately has received the fixed price only.
In the facts of the present case, the respondent-assessee cannot be said to have collected the CST at the rate of 10% or 12% from its buyers/receiver of the goods in view of the contract of fixed price, there is no question of passing over the same to its buyer in view of the aforesaid decisions of the Apex Court in the case of Mafatlal Industries (supra). Even otherwise the provisions of the CST Act do not contemplate any power to forfeiture of refund by the Revenue.
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