| Case ID |
5aa257a1-d779-48ca-8814-421add982755 |
| Body |
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| Case Number |
Civil Appeals Nos. 2959-D to 2961-D of 1985 |
| Decision Date |
Feb 18, 1987 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the decision of the tax authorities that insurance charges are includible in the 'turnover' for the purpose of sales tax under the Andhra Pradesh General Sales Tax Act, 1957. The court reasoned that the insurance charges were part of the cost of goods sold, as they were charged uniformly and not specifically at the behest of the buyers. The court emphasized that the definition of 'turnover' includes any amount charged by the dealer, regardless of its description. The appeals were dismissed, affirming the inclusion of these charges in the taxable turnover. |
| Summary |
This case revolves around the interpretation of the term 'turnover' under the Sales Tax Act, specifically concerning the inclusion of insurance charges in the computation of sales tax. The Supreme Court of India analyzed the definition of 'turnover' as defined in section 2(1)(s) of the Andhra Pradesh General Sales Tax Act, 1957, which states that any sum charged by the dealer, regardless of its description, is included in the turnover. The court noted that the insurance charges were collected by the seller before goods were shipped and were not paid at the buyer's request, thereby making them part of the sale price. The court dismissed the appeals, ruling that the insurance charges are indeed part of the turnover for sales tax purposes. This case highlights the importance of accurately defining terms in tax law and the implications of such definitions on tax liability. |
| Court |
Supreme Court of India
|
| Entities Involved |
HYDERABAD ASBESTOS CEMENT PRODUCTS LTD.,
STATE OF ANDHRA PRADESH
|
| Judges |
R.S. PATHAK, C.J.,
RANGANATH MISRA, J
|
| Lawyers |
S.T. Desai, Senior Advocate,
Kailash Vesdev, Advocate,
Naunit Lai, Advocate,
T.V.S.N. Chari,
Ms. Vrinda Grover,
Ms. Sunita,
W.A. Qadri
|
| Petitioners |
HYDERABAD ASBESTOS CEMENT PRODUCTS LTD., HYDERABAD
|
| Respondents |
STATE OF ANDHRA PRADESH
|
| Citations |
1989 SLD 226,
1989 PTD 77,
(1989) 59 TAX 56
|
| Other Citations |
(1969) 23 STC 154
|
| Laws Involved |
Sales Tax Act
|
| Sections |
2(1)(s)
|