9911796707
TMI Blog1991 (7) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 1978-79 the revision petitioners returned a total and taxable turnover of Rs. 12,12,85,788.05 and Rs. 4,21,79,060.20 respectively, under the Tamil Nadu General Sales Tax Act (hereinafter called the "T.N.G.S.T. Act"). The assessing authority determined the total and taxable turnover as Rs. 5,40,71,477.14 and Rs. 4,72,81,254.72 respectively. In doing so the assessing authority disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) of the Tamil Nadu General Sales Tax Rules was denied. We will straightway refer to rule 6(c)(i) which runs as follows: "Rule 6: The tax or taxes under sections 3, 3-A, 4 or 5 shall be levied on the taxable turnover of the dealer. In determining the taxable turnover the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total tur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Cement Control Order. Accordingly the contract of sale entered into by the appellants with the purchaser was on f.o.r. destination. It must mean that the price of goods was intended to be inclusive of railway freight. They despatched the cement 'freight to pay' and while making out the bill, the railway freight paid by the purchaser was deducted. The payment made towards the railway freight by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement Distribution Co. (P.) Ltd. v. State of Tamil Nadu [1982] 51 STC 171 (Mad.). In that a Division Bench of this Court held that the "sale price", as per section 2(h) of the Central Sales Tax Act, means the entire price inclusive of the freight, packing charges and excise duty because the bargain between the parties was the total consideration including the abovesaid items. The Division Bench ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the sale price, the Revenue may be justified in proceeding to take the freight also as part of the sale price and thus include it in the turnover on which tax can be imposed." "Thus, it is clear that freight cannot be included in the taxable turnover unless it is found that it was paid as a part of the stipulation of the price of the goods sold. The law on the subject has thus to be under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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