TMI Blog1983 (3) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... claim for deduction of bending and cutting charges in respect of M.S. rounds, M.S. angles and M.S. plates on the ground that they are post-sale charges not liable to be included in the taxable turnover. Subsequently, the assessing officer reopened the assessments for the four years by an order dated 2nd March, 1971, and included the bending and cutting charges collected by the assessee from the purchasers as part of the taxable turnover, and the amounts so included by the assessing authority in his revised order dated 2nd March, 1971, were as follows: 1965-66 Rs, 39,974.81 1966-67 Rs. 57,156.52 1967-68 Rs. 30,911.61 1968-69 Rs. 38,105.16 Aggrieved against the inclusion of those amounts as part of the taxable turnover for the vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause, but the Board had chosen to confirm the proposal to set aside the order of the Appellate Assistant Commissioner and restore the revised orders of the assessing authority. The order of the Board of Revenue is challenged in this appeal by the assessee. The question that arises for consideration in this appeal is as to whether the bending and cutting charges collected by the assessee from the customers can be included in the taxable turnover. The answer to the said question will mainly depend on the fact whether such charges are pre-sale charges or post-sale charges. The question will also depend on the fact whether the bending and cutting charges were paid as part of the price for the goods sold or whether it was paid independently of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the cheque. We will separately submit necessary bills for the delivery made against this order. The advance made by you will be adjusted against our bills, or, we will arrange to issue necessary delivery order on receipt of your confirmation of this offer. Full payment should be made by you within 12 days of the presentation of our bills without any deduction whatsoever. 3 and 4 ....................................... 5.. You have to take delivery of the materials ex-yard on production of our delivery order and make your own arrangements for transporting them to your desired destination." Thus, it is seen that while offering the materials intended for by the purchaser, the assessee has made it clear that the price payable is ex-y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed above clearly indicates that there is a separate bargain between the assessee and some of the purchasers for the payment of certain amounts for services rendered by the assessee in cutting and bending the materials supplied to the customers. The delivery order itself indicates that the price paid for the articles sold is separate and independent of the charges which the assessee had collected as cutting and bending charges from the customers. In cases where the materials do not require to be bent or cut for easy transport, the purchaser is not bound to pay any amount in excess of the rate shown for the article in the delivery order. Thus, the cutting and bending charges collected by the assessee are for certain specific services which ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harges paid to the labourers for selecting the timber and nothing was done by the dealer in respect of the goods sold and therefore the payment is only for selecting the timber required by the customers. Dealing with the expression "any sums charged for anything done by the dealer in respect of the goods", the court had expressed the view that it can only relate to something done by the dealer in respect of the goods which involves transfer of property in the goods and for consideration and that something should have been done in respect of the goods at the time of or before the delivery of the goods. The court further held that what is chargeable to tax is not any sum charged at the time of or before the delivery of the goods, but any sum, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Acts. This Court held that such handling and loading charges collected from the customers would form part of the sale price and are liable to be included in the taxable turnover. But the said decision is inapplicable to the facts of this case. Here, there is separate bargain between the parties as regards the services to be rendered by the assessee for cutting and bending the articles purchased by the customer for the purpose of easy transport. When there is a separate bargain stating that the bending and cutting charges are to be paid separately, it is not possible to include such charges as part of the sale price. What is the price payable in respect of an article has to be determined with reference to the bargain between the parties. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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