9911796707
TMI Blog1981 (8) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... to transport charges, charged separately, and therefore, the said amount should be deducted from the total turnover under rule 6(c)(i) of the Tamil Nadu General Sales Tax Rules, 1959. The Joint Commercial Tax Officer, Tirunelveli, rejected this contention. On appeal by the assessee the Appellate Assistant Commissioner, Tirunelveli, held that the freight charges, in respect of which exemption has been claimed could not be included in the taxable turnover as price of the goods, but has to be taken as an item eligible for deduction under rule 6(c)(i) and (iii) and accordingly allowed the appeal and ordered deletion of this amount from the taxable turnover assessed already. On a suo motu revision, the Board of Revenue, relying on the decision i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontract in pursuance of which the assessee has been permitted to deliver the stone metals ex-quarry and to bill the price under a separate voucher, and therefore, the finding of the Board that there was no acceptable proof of a new contract pleaded by the assessee is erroneous and unsustainable. It is further urged that in view of the fact that the freight has been separately charged by the dealer without including it in the price of the goods and in view of the varied conditions contained in the new contract, the amount under the head "freight" has to be deducted from the total turnover under rule 6(c)(i). Mr. S.V. Subramaniam, without any reservation, conceded that only in case the court reaches a conclusion that there was a novation of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rying into effect the purposes of the Act, but subject always to a condition that no contract, under or by virtue of which a sum greater than two lakhs of rupees may in any event be payable by the Board, shall be valid without the assent of Central Government. Section 88 of the Act gives the discretionary power to the Chairman, on behalf of the Board, to enter into a contract or agreement whereof the value or amount shall not exceed five thousand rupees. The latter part of the section is emphatic that every other contract and agreement on behalf of the Board shall be in writing, signed by the Chairman and by two other trustees and sealed with the common seal of the Board, and that no contract or agreement not executed as is in the said sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased on the letter of the Port Trust dated 28th December, 1971, the assessee has not placed any acceptable material to substantiate his case of novation. It may be noted here that the Appellate Assistant Commissioner has simply drawn his inspiration for his conclusion from the letter of the Port Trust dated 28th December, 1971, permitting the assessee to prepare the bills in two separate vouchers. But, he has not gone deep into the matter to see whether the minute dated 11th July, 1969, has given rise to the creation of a new contract. Therefore, in the absence of legal proof that the parties have created a new contract under a bargain, the only irresistible conclusion would be that the Port Trust has permitted the assessee, obviously at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the freight and other charges included in the bill are towards pre-sale expenses incurred by the dealer and not incidental to the sale itself." In view of the above discussion, we unreservedly hold that there was no novation of the contract and hence only the terms of the original contract have to prevail. On behalf of the assessee, Mr. S.V. Subramaniam drew the attention of this Court to the decision of this Court in Agricultural Farms Limited v. State of Tamil Nadu [1974] 34 STC 143. In that case, the assessees, who were limestone suppliers to India Cements Limited at Thalaiyuthu, claimed deduction of freight and transport charges from the total turnover returned by them on the ground that the said charges had been separately and s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
