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TMI Blog1976 (2) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 92,729.14 relating to transport charges paid to the growers included in the purchase turnover of the cane; (iii) A turnover relating to sale of pressmud-Rs. 7,315.80; (iv) A turnover of Rs. 16.84 relating to sale of bagasse; and (v) A turnover of Rs. 4,17,422.45 relating to sugarcane standard mixture. The assessing officer disallowed the claim of exemption in respect of all the five items. On appeal, the Appellate Assistant Commissioner held that only the sum of Rs. 5,10,872.26, the alleged payment of incentive bonus and the sum of Rs. 92,729.14, the transport charges paid by the assessees were liable to be included in the taxable turnover, but allowed the claim of exemption in respect of the other three items. The assessees preferred a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, therefore, the transport charges. Before the actual point is considered, it is necessary to set out some more facts. Various cane-growers enter into an agreement for the supply of the cane produced by them to the assessees, who are sugar mills. The assessees sometimes supply manures and fertilisers on credit and also arrange for inspection of the crop by experts. The cane-growers have to deliver the harvested sugarcane at the factory site of the mills. The price will have to be paid at the statutory prices fixed by the Government of India under the relevant Control Orders. It so happened that the canegrowers were agitating for payment of a higher price than the statutory price fixed by the Central Government. At the instance of the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er for the quantity of cane and the amount payable in respect of the cane. They are given a separate voucher for transport charges to which they are entitled to. On the ground that the transport charges were separately shown by the assessees, the Tribunal thought that under rule 6(c)(i) of the Tamil Nadu General Sales Tax Rules, 1959, the freight charges are not to be included in the taxable turnover of the assessees. It is the applicability of rule 6(c)(i) and the allowability of deduction that arises for consideration in this tax revision case. So far as Rs. 55,624.80 was concerned, certainly it could not be included in the taxable turnover as that related to transport charges paid by the sugar mills to third-party lorry owners and not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing dealer and if he shows the price of the goods and freight separately, he would be entitled to the benefits of rule 6(c)(i). On a careful reading of the provision, we are of the view that rule 6(c) would apply only to a selling dealer who is liable to pay tax on his sales turnover and not to a purchasing dealer who is to include his purchase turnover in his assessments. Though the word "dealer" by itself might include a purchasing dealer the words "specified and charged for by the dealer separately without including them in the price of the goods sold" show that the clause deals with a selling dealer showing the price and the freight separately in his invoice. The freight paid by a purchasing dealer could not be said to have been specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gree with the Tribunal that by reason of the assessees paying the transport charges separately to the cane-growers, they are entitled to deduct the amount from the taxable turnover. The order of the Tribunal, in so far as it related to a sum of Rs. 37,104.34 on account of transport charges is, therefore, liable to be set aside and it is accordingly set aside.
In the result, we hold that the transport charges to the extent of Rs. 37,104.34 and the turnovers relating to sale of press-mud, bagasse and standard mixture are liable to be included in the taxable turnover. The revision petition is accordingly allowed to that extent. The revenue will be entitled to its costs. Counsel's fee Rs. 250.
Petition partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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