TMI Blog1973 (9) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... ctured is distributed by the State Trading Corporation, and the sale is controlled by the Cement Control Order, 1961. The price at which the State Trading Corporation may sell cement is fixed under clause 6(2)(a) of the Cement Control Order and that price is f.o.r. destination. The assessee as the agent of the State Trading Corporation sold cement during the relevant period to different parties at the controlled price which included the freight charges. What the assessee did was to require the purchaser to pay the freight charges which the assessee was required to pay. In the invoice of sale, the price was computed in accordance with the price fixed under the Cement Control Order, f.o.r., and since under the internal arrangement between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Appellate Tribunal by the assessee, the orders of the authorities below were reversed and it was ordered that the freight paid by the purchasers at the destination ought to be deducted from the turnovers. The Sales Tax Appellate Authority for the view it has taken, relied on the decision of this court in B.T. Narayana Shenoy v. State of Mysore(1), wherein it was held: "That whatever be the place of contract, so long as in the invoices prepared by the petitioner freight was shown as an independent item and charged as such and it did not form part of the sale price specified in the invoices, the deduction claimed was allowable under rule 6(4)(f)(i)." 4.. Sri K. Srinivasan, the learned counsel for the respondent-assessee, fairly conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which reliance was placed read as follows: "(4) The price of the said productions supplied to the stockists shall be the current general gross list price charged by the company, free on rail, less such discount as may be fixed by the company from time to time; but the terms and the times of delivery and the payments therefor shall be in the absolute discretion of the company who may vary the same from time to time. (16) The conditions of any railway receipt shall be binding on the stockists and the date of delivery shall mean the date of the railway receipt and in the case of the consignments sold free on rail destination, the railway freight shall be nevertheless payable by the stockists at the destinations and the amount of freigh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it cannot be predicated as to what percentage of that price constitutes the freight and, in that view, it cannot be contended that the turnover of the goods is the price fixed by the Cement Control Order less the freight. The view which we take is supported by the decision of the Madhya Pradesh High Court in Birla Jute Manufacturing Co. Ltd. v. Commissioner of Sales Tax, Madhya Pradesh[1972] 29 S.T.C. 639; 1972 Tax. L.R. 2290. 6.. In the result, for the reasons stated above, these revision petitions are allowed, the order of the Sales Tax Appellate Tribunal is reversed, and the order of the authorities below are restored. In the circumstances, there will be no order as to costs. Petitions allowed. - - TaxTMI - TMITax - CST, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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