TMI Blog1969 (2) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... urt was delivered by SHAH, J.- The appellant, a public limited company carrying on the business of manufacturing and selling asbestos cement sheets and other products, has its factory at Sanatnagar, Hyderabad, in the State of Andhra Pradesh, and is registered as a "dealer" under the Andhra Pradesh General Sales Tax Act (6 of 1957). For the year 1959-60 the Commercial Tax Officer, in assessing the turnover of the company, allowed a deduction of Rs. 57,970.37 in respect of railway freight on articles supplied to outstation customers. The Deputy Commissioner of Commercial Taxes later revised the assessment, and directed that the railway freight paid in respect of the goods sold be included in the turnover. In appeal the Appellate Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of the invoice established that goods were sold at catalogue rate and that in paying the freight at the destination after the goods were received, the purchasers acted on behalf of the company. The relevant provisions of the Andhra Pradesh General Sales Tax Act (6 of 1957) may be noticed. The expression "total turnover" is defined in section 2(r) as meaning "the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax." The expression "turnover" is defined in section 2(s) as: " 'turnover' means the total amount set out in the bill of sale (or if there is no bill of sale, the total amount charged) as the consideration for the sale or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be deducted from the invoice of the company. If clause (4) stood alone the price charged by the company may be deemed to be the catalogue rate less the discount payable to the purchasers. But by clause (16) the purchasers clearly undertook to pay railway freight which was deducted from the invoice made out by the company. By clause (16) the company received the catalogue rate less the railway freight as price of the goods sold. We are unable to agree with the High Court that "the term relating to the price in the contract between the company and the stockist envisaged by this clause [clause (16)] implies an obligation on the part of the company to pay the railway freight". In our judgment, under the terms of the contract there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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