TMI Blog1971 (2) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 3530 of 1970. The petitioner has a cement factory at Macherla engaged in the manufacture of cement. The selling price of the cement is fixed by the Central Government from time to time under the Cement Control Order at an uniform rate which is inclusive of excise duty and inter-State sales tax. The retail prices are fixed by the State Government by adding incidental charges such as cost of transportation from railway shed to stockists, godown charges, margin of profit for stockists, State sales tax, local taxes etc. The price fixed is split up so as to show the ex factory price, the selling agent commission, rebate on supplies against rate contract, excise duty, sales tax, freight and contingencies. All these items put together form t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover relating to the sale of cement. We are unable to find any material in support of the contention of the Government Pleader that the price for cement paid by the consignee to the petitioners includes the railway freight or freight charges. Annexure I of the material papers is a copy of the bill dated 19th May, 1969, sent by the petitioner in Writ Petition No. 3530 of 1970 to the buyer, viz., Director-General of Supplies and Disposals. The item supplied is portland cement for consumption at Markapur Road, ex R.K. Cements, Macherla. The cost of cement is shown as hereunder: Rs. 42,873.87 Excise duty ... " 10,188.33 --------- Total ... " 53,062.20 A.P.G.S.T. on the above " 2,940.12 --------- " 56,002.32 Less: railway fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover. The facts disclosed in these petitions are identical with the facts of the case before their Lordships and therefore it must be held that the order of the assessing authority in adding the freight charges to each of the cases to the turnover and refusing to grant exemption in respect of this item is illegal and runs contrary to the decision of the Supreme Court. So far as the other item relating to cost of packing material is concerned, it will be open to the petitioners in each of the cases to prefer appeals against the assessment orders and show that they are entitled to exemption in respect of that item also. In the result, the assessments in each of these petitions, in so far as they relate to freight charges, are quashed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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