TMI Blog2001 (10) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Sales Tax Act. 2.. The petitioners are processors and dealers in cocoa, purchas ing cocoa from farmers. The petitioners are processing the same and selling it. The petitioners' case is that cocoa is purchased from the field, from farmers and after the purchase is effected, the petitioners are transporting the same to their shop/processing unit for processing for sale. According to the petitioners, the expenditure incurred for transportation and handling after the purchase for bringing the same to their shop or godown does not form part of the purchase turnover to attract sales tax. It is important to note that the item purchased, namely, cocoa, is taxable at the last purchase point in the State. Sri Harisankar, learned counsel appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in Dyer Meakin Breweries Ltd. v. State of Kerala [1970] 26 STC 248. In the latter case, the Supreme Court has held as follows: "........all the expenditure incurred by the appellant towards freight and handling charges was incurred prior to the sale and was a component of the price for which the goods were sold and the appellant was not entitled to the deduction claimed. Rule 9(f) seeks to exclude only those charges which are incurred 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the point of purchase, the turnover is the amount for which the goods are bought. However, we find that rule 8(2) also refers not to purchase price but "total turnover" of goods taxable at purchase point. Therefore it is obvious that rule 8(2) is subject to section 2(xxvii) and purchase turnover obviously includes the aggregate amount for which goods are bought. The aggregate amount in the context can only mean the price paid and incidental charges incurred for the purpose of purchase. So far as the dealer is concerned, the purchase of goods is effective or complete only when the goods are brought to his place of business, where he enters it in his books of accounts. The cost towards price paid for the purchase made at the field through age ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of goods is concerned, there is no provision for exclusion of freight incurred by the purchasing dealer. 5.. The position with regard to the Central Sales Tax Act is not very different. "Sale price" as defined under section 2(h) of the Act includes all expenditure incurred until the goods are delivered to the buyer. The petitioners have not established or proved that the purchasers have accepted the goods in their godown and requested for delivery to carrier at the cost of the buyer. In fact, if freight is payable by the buyer, there is no reason why freight is paid by the petitioners who could have sent the goods on freight payable basis. Of course there is no bar against sending of goods after paying freight by the seller and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
