TMI Blog1984 (2) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... duction in a sum of Rs. 1,25,808.08 from the total turnover, as transportation charges paid to the sellers of firewood. The Commercial Tax Officer, Mangalore, treated this item as part of the price of the firewood and included it in the taxable turnover. In the appeal preferred against the assessment, the Deputy Commissioner of Commercial Taxes (Appeals), Mangalore, upheld the assessment and dismissed the appeal. In further appeal before the Appellate Tribunal, the Tribunal deleted the turnover in dispute and directed the assessing officer to modify the assessment. Being aggrieved by the said order, the State has filed this revision petition. 3.. The assessee purchased firewood from five suppliers and paid different amounts to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at were the stipulation between the appellant and the sellers, the terms about the supply of firewood from the places of felling trees and the term for payment of transportation charges separately would not have found mention in the agreement of purchase. We are convinced that the transportation of firewood from the forest to the appellant's depot was incidental or subsequent to the sale and that the cost incurred for transport was not meant to be included in the price of the goods purchased by the appellant. The deduction claimed by the appellant is justly allowable." 5.. Mr.Rajendra Babu, the learned counsel for the State, is very critical about the findings recorded by the Tribunal. He urged that even though freight charges are separat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Bhat, the learned counsel for the assessee, however, contended that we are not concerned with the definition of "turnover", but we are concerned with the "purchase price" as mentioned under section 6 of the Act. Section 6 provides for levy of purchase tax on the purchase price of goods at the same rate at which it would have been leviable on the sale price of such goods under section 5. The "purchase price" or "sale price" has not been defined under the Act. Purchase price in the context in which it is used, however, must be the total price which the purchaser pays to secure the goods. In the instant case, it was obligatory for the seller to bring the goods and deliver it at the depot of the assessee. So far as the assessee is conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er in making the goods available to the purchaser at the place of sale, they would constitute an 'addition to the cost of the goods to the dealer and would clearly be a component of the price charged to the purchaser. The amount of 'freight and handling charges' would be payable by the purchaser not under any statutory or other liability but as part of the consideration for the sale of the goods and it would, therefore, form part of 'sale price' within the meaning of the first part of the definition...................." 7.. In the instant case, the assessing officer has recorded a finding that the property in the goods passed to the assessee at the depot where the goods were delivered and not at the place where the goods commenced movemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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