1970 (3) TMI 147

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..... . To determine the question, it is necessary to state a few relevant facts: The assessees are M/s. James Finlay & Co. Ltd., Visakhapatnam, and are dealers in coal, electrical goods etc. and they filed their returns for the four assessment years 1960-61 to 1963-64. It is not necessary to state the details of the items which go to make up the total turnover for each of the assessment years, as nothing turns upon that since they claimed exemption only in respect of the turnover relating to railway freight and handling charges. It was their case before the assessing authority, the first appellate authority and also before the Tribunal that they were entitled to exemption on the turnover relating to railway freight and handling charges in view .....

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..... basis that the delivery of the goods, viz., coal in this case, was made by the assessees at Visakhapatnam to the buyers and the sale took place at Visakhapatnam. There was no dispute regarding the fact that the sale took place at Visakhapatnam, for the consignor and the consignee were the assessees and delivery of the goods was made against payment at Visakhapatnam. We may now notice clause (h) of section 2 of the Central Sales Tax Act: "'Sale price' means the amount payable to a dealer as consideration for the sale of any goods less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before th .....

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..... h freight and handling charges prior to the stage of delivery and in this case, the expenditure incurred towards freight and handling charges was prior to delivery in connection with the sale in question. Therefore, the Tribunal was [1969] 24 S.T.C. Short Notes 6; since fully reported as Dyer Meakin Breweries Ltd. v. State of Kerala [1970] 26 S.T.C. 248 (S.C.). right in holding that "sale price" does not include freight and handling charges and as such, the assessees are entitled to claim exemption in respect of this turnover shown as freight and handling charges for the four assessment years in question. In the result, the order of the Tribunal is confirmed and the revisions are dismissed with costs. Petitions dismissed.
Case laws, D .....

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