1981 (12) TMI 158

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..... Both the assessees carry on business in minerals. They sell the minerals to their customers fixing the price ex mine, but undertake to transport the minerals to the particular destination which is pointed out by the customers concerned. The assessees claimed that they were entitled to deduct the cost of freight from the total turnover, in accordance with the provisions of rule 6(c)(i) of the Tamil Nadu General Sales Tax Rules, 1959. This rule provides that freight, when specified and charged for by the dealer separately, without including the freight in the price of the goods sold, will have to be deducted from the total turnover of a dealer for the purposes of arriving at the taxable turnover. This claim, however, was not granted by the .....

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..... think, we can decide these appeals by having regard to the findings of fact which the Board itself had recorded in its order. In paragraph 6 the Board observed that there was nothing in the record to show that delivery of the minerals by the assessees was ex mine. The Board also stated that the contracts entered into between the assessees and their buyers showed that though the price was ex mine, the sales were concluded only at the buyers' sites. On the above two findings the question of the deduction claimed by the assessees under rule 6(c)(i) does not brook further argument. We have earlier restated the provisions of rule 6(c)(i). The rule only requires that freight should be charged, but should not be included in the price of the good .....

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..... hing other than freight the fact that the buyer was either undercharged or overcharged for freight will not affect the claim for deduction. In an inquiry where the ascertainment of correct freight is one of the matters to be determined it would be quite relevant to go into the question as to what precisely is the amount of freight properly chargeable and what amount of freight was actually charged for in any given transaction. But in a matter of deduction under rule 6(c)(i) all that the assessee need establish is that whatever he had charged his customer for by way of freight was charged separately and that it did not from part of the price of the goods with respect to which the freight was charged. It does not matter whether, as between th .....

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