TMI Blog1973 (11) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... to with Escorts Limited. Under the terms of the said agreement, the petitioner would become the owner of the motor cycles before it sells the same to its customers within the State of Karnataka. The turnover in respect of motor cycles is liable to sales tax under the Mysore Sales Tax Act, 1957 (hereinafter referred to as the Act). In its return in respect of the assessment year 1965-66 (1st January, 1965, to 31st December, 1965), the petitioner claimed deduction in respect of the freight charges incurred by it in transporting the motor cycles from the site of the factory at Haryana to Bangalore where its place of business is situated. The Assistant Commissioner of Commercial Taxes, who was the assessing authority, disallowed the said claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ward freight charges" were exempted from sales tax under rule 6(4)(f)(i) of the Rules. The above decision no doubt fully supports the contention of the petitioner in this case. But, we are of the opinion that the view expressed by the Division Bench of this Court in the above case is no longer good law in view of the two decisions of the Supreme Court in Dyer Meakin Breweries Limited v. State of Kerala[1970] 26 S.T.C. 248 (S.C.). and D.C. Johar Sons (P.) Ltd. v. Sales Tax Officer, Ernakulam, and Another[1971] 27 S.T.C. 120 (S.C.). In Dyer Meakin's case(2), the facts were these: The assessee was manufacturing liquor at Its distilleries and breweries situated in different places In the States of Uttar Pradesh and Haryana and used to trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness. We feel that the decision in the case of D.C. Johar Sons (P.) Ltd.[1971] 27 S.T.C. 120 (S.C.). is on all fours so far as the facts of the present case are concerned. The principle enunciated by the Supreme Court in the two decisions, referred to above, is that if the freight charges in respect of which deduction is claimed are unconnected with the sales effected by the dealer, such freight charges could not be deducted from the turnover under the Rules. Sri Bhat contended that the freight charges incurred by the assesseepetitioner in this case in transporting the goods from Haryana to Bangalore were incidental to the sales effected by the petitioner to its customers and, in support of the above contention, relied upon an affidavi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erruled. The Tribunal below was right in holding that the petitioner was not entitled to claim deduction in respect of the freight charges under rule 6(4)(f)(i) of the Rules. The next contention of Sri Bhat that the freight charges incurred by the petitioner in getting the goods to its place of business from the place of manufacture, could not form part of the consideration paid for the motor cycles, and hence is not liable to sales tax has only to be stated to be rejected. The expression 'turnover' is defined under the Act as the aggregate amount for which goods are bought or sold or supplied or distributed by a dealer, either directly or through another, on his own account or on account of others, whether for cash or for deferred paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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