1970 (3) TMI 147

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..... . Nos. 867, 977, 978 and 963 of 1965 is whether the railway freight and handling charges in respect of the supply of coal made by the assessees to the buyers constitute a part of the "sale price" within the meaning of clause (h) of section 2 of the Central Sales Tax Act, 1956. To determine the question, it is necessary to state a few relevant facts: The assessees are M/s. James Finlay Co. Ltd. .....

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..... er negatived the claim for exemption and assessed them by including the railway freight and handling charges in the total taxable turnover. The assessees preferred appeals unsuccessfully to the Assistant Commissioner of Commercial Taxes and later to the Tribunal. The Tribunal, having regard to the definition of "sale price" given in clause(h) of section 2 of the Central Sales Tax Act, set aside th .....

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..... ght and handling charges were not incurred in connection with the transactions in question. Throughout, it was proceeded on the basis that the delivery of the goods, viz., coal in this case, was made by the assessees at Visakhapatnam to the buyers and the sale took place at Visakhapatnam. There was no dispute regarding the fact that the sale took place at Visakhapatnam, for the consignor and the c .....

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..... efore, the "sale price" as defined, means only the amount payable to a dealer as consideration for the sale of goods excluding the cost of freight or delivery of the goods at the time of or before the delivery of the goods. Since admittedly, the delivery of the goods was at Visakhapatnam against payment, the cost of freight till the time of delivery has to be excluded from the consideration for th .....

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..... ng charges prior to the stage of delivery and in this case, the expenditure incurred towards freight and handling charges was prior to delivery in connection with the sale in question. Therefore, the Tribunal was [1969] 24 S.T.C. Short Notes 6; since fully reported as Dyer Meakin Breweries Ltd. v. State of Kerala [1970] 26 S.T.C. 248 (S.C.). right in holding that "sale price" does not include frei .....

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