Ravinder Raj vs Maruti Udyog Limited and M/s Competent Motors Co. Pvt. Ltd

Case: Ravinder Raj vs Maruti Udyog Limited and M/s Competent Motors Co. Pvt. Ltd

Case Facts:

Ravinder Raj is the petitioner and Maruti Udjoy limited is the respondent 1 and M/s Competent Motors
Co. Pvt Ltd being the respondent 2. In the year 1985 Mr. Ravinder Raj booked  a cream colour Maruti 800 car by paying Rs. 10,000. On 15^th July 1988 the petitioner was informed that his Maruti Car allotment has matured for delivery. The next day i.e on 16^th July 1988 the petitioner paid  Rs. 78351.05 towards the total cost  of the car. On 1^st March 1989 there was an increase in the excise duty payable , causing a price hike of Rs. 6710.61. The petitioner thus received a letter from the respondent 2 to deposit the excess amount payable which the petitioner denied to pay .

Judgment:

The court did not accept the petitioners claim

Comments:  

According to us the court took the right decision. As according to the Sales of Goods Act 1930 Section 64A (2) any contract for the sale or purchase of goods without the stipulations about the payment of tax where the tax was not charged at the time of making the contact, or for the sale or purchase of such good any increase in the tax or any part of tax is payable, the seller may add the amount equivalent  to the increase in tax to the contact price and he shall be entitled to be paid and to sue for the recovery of the additional amount. These provisions are applicable to the following taxes

1.      any duty of customs or excise on goods

2.      any tax on the sale or purchase of goods.

Under section 46A(1) of the Sales of goods Act the respondent has the rights of an unpaid seller. The claims of the petitioner failed and the case was given the right judgment. Any increase in the future tax rate is not in the hands of the producer and thus he should not bear the extra cost.

Law included: Sales of Goods Act 1930