Case Law Details
Global Resources Company Vs State of Jharkhand (Jharkhand High Court)
Jharkhand High Court held that as per Explanation-III to section 2(xlviii) of JVAT Act sale price shall not include cost for transport of goods from seller to buyer provided such cost is separately charged to buyer.
Facts-
The Petitioner is a Company, engaged in purchase and sale of ores and minerals, rocks, processed minerals, pyroxenite, duly registered under the provisions of JVAT Act. The Petitioner used to sell its finished products to various customers within the state and outside the state of Jharkhand including M/s Tata Steel Ltd. The goods were being supplied by the Petitioner pursuant to the Purchase orders issued from the parties including M/s Tata Steel Ltd. and there has been no written contract for sale between the Petitioner and its Purchaser.
The petitioner is aggrieved by the order passed by AO who while making assessment for the period 2010-11 had included transportation cost (Rs.61,52,526.00/-) in the total G.T.O and assessed the tax liability. The appeal filed by the petitioner before the learned JCCT was also rejected and thereafter, the petitioner challenged the order before the learned tribunal who upheld the orders of tax authorities.
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