1968 (7) TMI 70 - HC - VAT and Sales Tax

Summary

The High Court of Madras dismissed the tax case, ruling that insurance charges incurred by a company for covering the risk in transit of goods cannot be considered part of the turnover of the dealer if they are independent of the price and not included therein. Rule 6 for exemptions or deductions only applies when the amount would be part of the price. The court found that insurance charges are incurred for something done in respect of the goods and do not form part of the turnover.