TMI Blog1973 (7) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... price of the goods, the assessing authority chose to reject the claim. The appeals against such rejection also failed. There were further appeals before the Tribunal. The Tribunal also has upheld the rejection of the claim for deduction on the ground that though the freight and transport charges have been separately charged for in the sale invoices, the assessees are not entitled to the benefit of deduction, as they have charged in the earlier years an all inclusive price for the limestone sold, and that freight and transport charges have been separately claimed in the assessment years only for reducing the tax liability. The question is whether the disallowance of the claim for deduction of freight and transport charges could be sustained. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preparation of the invoices by the assessees showing the two items separately has to be taken note of, and the applicability of rule 6(f)(i) of the Madras General Sales Tax Rules has to be considered in the face of the revised agreement and the relevant invoices. It cannot be disputed that the said rule stands attracted to the sale of goods in respect of which the assessees have charged freight and delivery charges separately, apart from the price of the goods. We do not see any reason as to why the assessees should be denied the benefit of this deduction merely because similar invoices were not prepared in the earlier years. The fact that the assessees bargained for an all inclusive price and did not bargain for freight and delivery charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the point of extraction. Therefore, it has to be taken that the buyer has fixed the sale price of the goods at the point of extraction and agreed to pay separately the freight and transport charges from the place of extraction to the buyer's factory. It is not the case of the revenue that the assessees have any place of business at Thalaiyuthu where they stock the limestone for the purpose of sale to the India Cements Ltd., and others at a price to be fixed without reference to the transport of the goods. The parties are aware that the goods are to be brought from the place of extraction to the factory and that the cost of transport of the limestone has to be borne by the buyer. In Narayana Shenoy v. State of Mysore(1), a similar point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em in the sale price and whether that was the bargain between the parties. The invoices in these cases are in accordance with the terms of the agreement between the parties. There cannot be any dispute that in this case the agreement between the assessees and the buyer actually fixed the sale price, apart from the freight and delivery charges. The terms of the agreement clearly show that the bargain between the parties was to pay and receive the price proper and that the buyer was under an obligation to pay the freight and transport charges from the place of extraction to the factory site. The learned Assistant Government Pleader then seeks support from the decision of the Supreme Court in Dyer Meakin Breweries Ltd. v. State of Kerala(1) in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es which are incurred by the dealer either expressly or by necessary implication for and on behalf of the purchaser after the sale when the dealer undertakes to transport the goods and to deliver the same or where the expenditure is incurred as an incident of sale. It is not intended to exclude from the taxable turnover any component of the price, expenditure incurred by the dealer which he had to incur before sale and to make the goods available to the intending customer at the place of sale." We are not in a position to say that this decision will be applicable to the facts of this case. As already stated, it is not shown that the assessees have any place of business where the limestone was stored by them and later sold. The assessees e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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