1987 (10) TMI 354 - SC - VAT and Sales Tax

Whether the amount paid by way of freight by the principals of the appellant-commission agent was liable to be included in the taxable turnover of the appellant? Held that - Appeal allowed. The legislature intended that where the cost of freight was charged separately that amount could not be included in the turnover of a dealer. That is what was done in this case. The freight was separately charged and was paid accordingly by the principals. The High Court erred in including the cost of freight in the taxable turnover of the appellant.

Summary

The Supreme Court allowed the appeal against the High Court's judgment, which included freight payment in the taxable turnover of the appellant-commission agent. The court held that the cost of freight, separately charged and paid by the principals, should not be included in the turnover. The High Court's decision was set aside, and the Additional Judge's order was restored.