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2019 (12) TMI 800 - MADRAS HIGH COURTValuation - sale of Gypsum - inclusion of freight charges paid by the Assessee for delivery of Gypsum sold by it to the customer - Tamil Nadu GST Act - HELD THAT:- The Division Bench of this Court in the case of INDIA METERS LIMITED VERSUS STATE OF TAMIL NADU [2001 (11) TMI 979 - MADRAS HIGH COURT] was concerned with almost similar controversy where the Assessee/Dealer supplied power meters to the State Electricity Board under a "F.O.R. Destination" contract and claimed under Rule 6(c) of the TNGST Rules that the freight charges were not part of taxable turnover. Thus, mere bifurcation of the sale price of the goods in a mutual contract between the parties under a separate bargain or even a common bargain will not be material and so long as the contract of sale is "F.O.R. Destination" and the contract of sale of goods results in the transfer of property of goods at the door steps of the buyer, all pre-sale expenses incurred by the selling dealer will be part of the sale price or taxable turnover. The deduction under Rule 6(c) of the TNGST Rules cannot be claimed by the selling Dealer, contrary to the specific terms of the "F.O.R. Destination" contract. Once the terms of the contract clearly specified, the contract of sale was "F.O.R. Destination", the bifurcation of total sale price in two or three parts, as has been done in the present case like price for Gypsum, freight charges and loading and stacking charges will not be material, insofar as the question of determination of the taxable turnover is concerned. It is trite law that the Rule cannot go beyond the four corners of the main statutory provisions. The definition of taxable turnover does not make any such exclusions and it is clear that all pre-sale expenditure incurred by the seller/dealer are part of sale price including the freight as in the present case will fall under taxable turnover. The learned Sales Tax Tribunal as well as the Assessing Authority were justified in upholding the imposition of the tax on such part of the freight charges on the Assessee in the present case - Petition dismissed.
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