9911796707
TMI Blog2010 (7) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... In other words, he is a dealer in cement concrete blocks. He filed returns for various months from January 2006 to May 2007 and paid tax under the Act at four per cent on the turnover for each of the above months and also claimed exemption on the turnover in respect transportation charges incurred by the appellant and reimbursed by its customers to the appellant. The first respondent issued proposition notice under section 3(1) of the Act, wherein, he proposed to disallow the claim of exemption and re-determined the taxable turnover for January 2006 at Rs. 1,59,13,832 and levied tax at four per cent on the ground that the appellant was not eligible to claim exemption in respect of transportation charges as per rule 3(2) of the Karnataka Val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the first appellate authority is illegal and accordingly he set aside the same and restored the order of the assessing authority. Aggrieved by the same, the assessee is in appeal. The learned counsel for the appellant-assessee submitted that in the invoice raised, the transportation charge is separately mentioned. It is optional and after the said amount was collected from the customer on behalf of the transporter and the entire amount of transportation charges collected was paid to the transporter without adding any amount to the value of the goods. They only received Rs. 150 per load as commission and in that view of the matter, the transportation charges would not be a part of the total turnover and they are not liable to pay tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es what a "taxable turnover" is. Section 2(35) defines what is "total turnover" and section 2(36) defines the meaning of the word "turnover" and section 2(29) defines what a "sale" means under the Act. Section 2(31) defines "taxable sale" and section 2(32) defines what a "tax invoice" means. Rule 3(1) provides for determination of turnover. The tax is not payable on turnover. Tax is payable on taxable turnover arrived at as stipulated in rule 3(2) of the Rules. Rule 3(2) provides for deductions out of the turnover to arrive at taxable turnover. Freight charge paid in the course of sale of goods by a dealer to its customer is not one such item which could be deducted out of turnover. Therefore, in arriving at a taxable turnover, the statute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... component to the said transportation charges, collecting the value before effecting sale of the goods, when sale of goods becomes complete only after the delivery of the goods, therefore, it becomes part of taxable turnover. If after transfer of title to the goods by delivery of the goods, for which he has already collected the price of the goods and after delivery if he receives the transportation charges, then the said amount does not form part of the taxable turnover as it is not a part of the sale consideration or paid prior to sale of the goods. That appears to be a clear manifestation of the intention by the Legislature as contained in various definitions referred to above and the clarifications issued by the Government. In that view ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
