TMI Blog2015 (8) TMI 1356X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the present case would certainly form part of the freight charges and in the facts of the present case, the contract being ex-works for refinery, Visakhapatnam and such expenditure agreed to be borne under the contract by the buyers to the buyers’ account. Thus the siding and shunting charges would not form part of the sale price and thus the Assessing officer had rightly excluded the same from the computation of the sale price - revision allowed - decided in favor of assessee. - T.R.C. No.135 OF 2002 - - - Dated:- 4-8-2015 - G. Chandraiah and Challa Kodanda Ram JJ. S. Krishna Murthy for the petitioner The Special Government Pleader for Taxes (TG) for the respondent ORDER This Tax Revision Case is filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer while relying upon the judgment of the Supreme Court reported in M/s. Hindustan Sugar Mills Ltd., vs. State of Rajasthan [43 STC 13] , finally held that the amounts received by the dealer in arranging transportation of finished products through railway tankers and in the process incurring of expenditure towards siding and shunting would form part of the freight and is not includable in the sale price, as defined under Section 2(h) of the Central Sales Tax Ac t and thus exempt from the tax. The Revisional Authority/Deputy Commissioner (CT) set aside the orders of the Assessing Officer by order dated 22.03.1995. According to the Deputy Commissioner, the expenditure incurred, which was reimbursed by the customers to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and delivery. As a matter of fact, the price at which the petroleum products could be sold by the petitioner was determined by the Administrative Pricing Mechanism (APM) by the Government of India. In other words, the sale price is a fixed one as dictated by the Government of India. This aspect of the matter is not in dispute. It is also not in dispute that the sale price was separately shown in the invoice. In addition to the other expenditure siding and shunting charges as one of the components were included under the freight charges. The Assessing Officer had also recorded that the siding and shunting charges are assessed and recovered on a specific basis viz., the movement of rakes having one or two engines placed at the site at the req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght charges, though expressed as a single unit, nevertheless would include the expenditure that such transporter is likely to incur in bringing the empty vehicle to the loading point and all other expenses and profit elements in the process of carrying out their obligation as a transporter. Viewed from that angle, it cannot be said in the facts of the present case that merely because certain elements of expenditure are involved on account of the siding and shunting charges for placing the empty wagons at the filling/delivering point, the same would not form part of the freight charges. We may have to keep in focus that the entire expenditure is being incurred to enable the goods to be transported from the delivery point to the destination a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght on the traffic over the assisted sidings shall be payable by the company .. would indicate that the expenditure incurred by the individual who is using the facility of siding and shunting extended by the railways in a given case would form part of the freight charges. In the facts of the case, the order of the Tribunal to the extent confirming the order of the Deputy Commissioner (CT) treating the siding and shunting charges as part of the sale price are liable to be set aside and the questions are required to be answered in favour of the assessee and against the revenue. Accordingly, the Tax Revision Case is allowed answering the questions in favour of the assessee and against the revenue. No order as to costs. Miscellaneous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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