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2004 (8) TMI 707 - ALLAHABAD HIGH COURTImports coal - Whether inward freight charges are part of the taxable turnover under the U.P. Trade Tax Act - HELD THAT:- Admittedly, dealer was required to pay freight to acquire the goods, therefore, such freight is included in the aggregate amount and form part of the turnover. Exclusion provide by Sub-section (i) of Explanation-II is in respect of freight i. e. paid by the buyers for transportation of the goods after their purchase from sellers, supplied to the buyers. Freight subject matter of dispute is not a freight contemplated by exclusionary provisions contained in the explanation. Freight paid by the seller for the goods purchased by him for sale is his legal burden and is a part of costs for acquiring the goods. It is the dealer who had settled the amount of Truck hire from coalery to his place of business and therefore, it was his legal obligation to pay the amount of Truck hire and it is of no consequence that subsequently recovers from the buyers. In the present case, dealer failed to prove that it acted as a Purchasing Commission Agent, inasmuch as, no evidence has been adduced for a contract of agency as stated above, holding of B-license under the Coal Control Orders and charging of costs of coal, freight charges and expenses and commission separately in the invoices are of no consequence. Prices charged separately in the invoices are only device with an intent to reduce the sale price. In the case of Commissioner of Trade Tax v. Sunil Kumar Coal Agent, [2003 (5) TMI 520 - ALLAHABAD HIGH COURT] in the similar circumstances, this Court held that inward freight is the part of turnover and dealer failed to prove that he acted as Purchasing Coal Agent in the absence of any contract of agency. In the result, revision is allowed. Order of Tribunal is set aside and it is held that the freight incurred prior to sale in bringing the coal from Coalery to the dealer destination would be part of the turnover.
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