SUPREME COURT OF INDIA

Before:- S.N. Variava, Dr. A.R. Lakshmanan and S.H. Kapadia, JJ.

Civil Appeal Nos. 3665 of 1999 with 2343-2345 and 5661 of 2000 with 148 of 2002 and 8408-8412 of 2003. D/d. 12.1.2005.

Commissioner of Central Excise, Aurangabad - Petitioner

Versus

M/s. Videocon International Ltd. - Respondent

Sales tax - Assessee was selling its product though their Depots - In some States where Assessee had to pay sales tax they deduced the sales tax paid from the goods - States where assessee had benefit of exemption from sales tax, they paid sales tax on price without deducing the sale tax element - Department contended that as the price was higher in that State that price should be applicable for sales throughout India - Such stand held untenable.

[Para 1]

JUDGMENT

In all these matters the concerned Assessee was only selling its products through their Depots. In some States where the Assessee had to pay sales tax they deducted the sales tax paid from the price of the goods. In States where the Assessee had benefit of exemption from sales tax, they paid sales tax on price without deducing the sales tax element. The Department contended that as the price was higher in that State, that price should be applicable for sales throughout India. Such a stand is clearly untenable.

2. The Assessees, in all these cases have succeeded, and rightly so, before the Collector (Appeals) and the Tribunal. The position being so clear it is surprising that a decision to file Civil Appeals was taken. We see no substance in these Appeals. They all stand rejected. However, there will be no order as to costs.

Appeal dismissed.