In Brief
Universal Cylinders Limited manufactured LPG cylinders for government oil companies at a provisional price of Rs. 682 per cylinder and paid sales tax accordingly. The Ministry of Petroleum and Natural Gas later reduced the final approved price to Rs. 645 per cylinder, and the oil companies deducted the difference. The assessee sought refund of the tax paid on the Rs. 37 excess. The Supreme Court held that under the Rajasthan Sales Tax Act, the 'sale price' is the amount actually and legally payable, not any provisional price. Since the assessee was legally bound to accept the government-determined final price and refunded the excess amounts, it was entitled to refund of the corresponding sales tax. The appeal was allowed.
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