In Brief
Universal Cylinders manufactures LPG cylinders for government-owned oil companies under prices initially set at Rs.682/- per cylinder but explicitly designated as provisional and subject to final approval by the Ministry of Petroleum & Natural Gas. After supply, the ministry reduced the final price to Rs.645/-, and oil companies recovered the Rs.37/- excess. The Supreme Court held that the 'amount payable' under sales tax law is the final government-approved price, not the provisional price. Accordingly, the assessee was entitled to refund of sales tax paid on the Rs.37/- excess, as that amount was never legally receivable. The appeal was allowed and the refund directed.
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