TMI Blog1973 (4) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2.. Before the Sales Tax Officer the respondent claimed a deduction of Rs. 23,104 on account of freight, which he claimed he had not charged although it might have been shown in the bills produced. The Assistant Commissioner of Sales Tax disallowed that claim of the assessee and added that amount to the gross turnover. Against that order an appeal was preferred before the Deputy Commissioner of Sales Tax, who affirmed the view of the Assistant Commissioner of Sales Tax and dismissed the appeal. On a further appeal to the Board of Revenue, the learned Member of the Board of Revenue allowed the appeal partly by giving credit for the freight, but dismissed the appeal so far as the packing materials were concerned. On a request by the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is necessary for a freight to constitute sale price is that it should not be separately charged and it should be a part of the total price that the assessee may charge to the customer. In this connection, we might further observe that the bill by itself will not be conclusive of this question in some types of cases at least. There may be cases where the bills produced are the only material to show the agreement between the parties as also the fact whether freight was actually charged or not; after all bills would be an inclusive piece of evidence which evidence would be rebuttable. If the contention of the learned Government Advocate were to be accepted, it would imply that the bill should be treated as conclusive evidence of the agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods to the purchaser, he does not pay the freight himself. He sends the loading documents, and when the purchaser receives the articles he pays the freight to the carrier and pays the balance to the seller. It is for this purpose that in the bills the freight is shown separately and is deducted from the total price agreed upon. These transactions indicate that the seller was agreed to charge the total price, including the freight, etc., and so the whole amount is covered by the definition of sale price as quoted above." 6.. We may observe that we are in agreement with the view expressed by the said Division Bench. Two things are necessary in order to make the freight a part of the sale price. Firstly, there should be no agreement about c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded above. 8.. The learned Government Advocate also invited attention to the observations of their Lordships of the Supreme Court in Tungabhadra Industries Ltd., Kurnool v. Commercial Tax Officer, Kurnool[1960] 11 S.T.C. 827 (S.C.). We are unable to find any such proposition in the observations of their Lordships of the Supreme Court as is sought to be suggested by the learned Government Advocate. There can be no doubt that the recitals in the bills by themselves will be inclusive piece of evidence and, in the absence of any other material, they will furnish good proof of the intention of the parties relating to the terms of the agreement, or the freight being charged. But it would be too much to accept the contention that the bills shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
