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2011 (8) TMI 1029 - HC - VAT and Sales TaxTaxability of transportation charges - Tribunal held that transportation charges so collected are part of the post-sale expenditure and are not liable to be included in the total turnover - Held that:- dealer collects freight charges as part of total order value. Though, it is specifically mentioned what is the cost component to the said transportation charges, collecting the value before effecting sale of the goods, when sale of goods becomes complete only after the delivery of the goods, therefore, it becomes part of taxable turnover. If after transfer of title to the goods by delivery of the goods, for which he has already collected the price of the goods and after delivery if he receives the transportation charges, then the said amount does not form part of the taxable turnover as it is not a part of the sale consideration or paid prior to sale of the goods. That appears to be a clear manifestation of the intention by the Legislature as contained in various definitions referred to above and the clarifications issued by the Government. In that view of the matter, the order passed by the revisional authority is strictly in accordance with law, whereas the appellate authority was carried away by the legal position prior to the enactment of the Act and thus he got confused himself without looking into the express provisions contained in the Act. The revisional authority was therefore justified in interfering with the order as the order was prejudicial to the remedy - Following decision of APCO Concrete Block and Allied Products Versus Deputy Commissioner of Commercial Taxes, Audit 1, DVO, Bangalore and Others [2010 (7) TMI 943 - KARNATAKA HIGH COURT] - Decided in favour of Revenue.
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