TMI Blog2006 (5) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... arise out of the aforementioned order of the Board of Revenue: "Whether, in the facts and circumstances of the case, the Tribunal was justified in holding that the handling charges shown separately in the bills are deductible from the taxable turnover?" Facts necessary for the disposal of this reference need mention in brief infra to appreciate the issue referred: The dealer (respondent herein) is a limited company. They are engaged in the business of manufacture and sale of atta, maida, suji, etc. For the period January 1, 1983 to December 31, 1983, the dealer was assessed to Central sales tax for certain inter-State sales transactions vide assessment order dated November 28, 1985 on a total turnover of Rs. 39,61,468. After giving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 13,191 from the taxable turnover of the dealer for the period in question. It is against this view of the Board of Revenue, deciding the issue against the Revenue and in favour of the dealer, the Revenue (Commissioner of Sales Tax) sought the reference to this court. The Board acceded to the prayer made by the Revenue and has accordingly referred to this court the aforementioned question of law for answer. Heard Shri A. S. Kutumble, learned Additional Advocate-General with Shri M. Parwal, learned penal lawyer for the applicant. None for the nonapplicant, though served. Placing reliance on the decision reported in Vimalchand Prakashchand, Sarafa, Ujjain v. Commissioner of Sales Tax, Madhya Pradesh [1968] 22 STC 22 (MP); [1969] 2 VKN 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing factors are deductible from the sale price: 1.. Any sum allowed as cash discount according to the practice normally prevailing in the trade. 2.. Cost of freight. 3. Cost of delivery. 4. Cost of installation where such cost is separately charged. In the present case, it has been held as a fact by all the authorities that handling charges, i.e., Hammali worth Rs. 13,191 was charged separately and was also shown separately in the bills by the dealer. In our opinion, therefore, these charges were in the nature of cost of delivery of goods like coolie charges and hence, had to be deductible from the sale price. In other words, cost of delivery charges, if separately recovered do not form part of the sale price and fall in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alali, adat and other charges, and realised the aggregate of such amounts from the buyers. Thus the payment of the amounts on account of adat, dalali, bank commission, charity and insurance must be regarded as part of the consideration for the sales. The burden of proving that these charges did not form any part of the consideration for the sales of cotton was on the assessee. But it led no evidence whatsoever to show that these charges were not included in the price and that it could not refuse to perform the contract for the sale of cotton if the purchasers refused to pay charges on account of adat, dalali, bank commission, charity and insurance. In our opinion, on the facts found by the Tribunal, the amount of charges in regard to adat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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