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TMI Blog1991 (7) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... d taxable turnover of Rs. 12,12,85,788.05 and Rs. 4,21,79,060.20 respectively, under the Tamil Nadu General Sales Tax Act (hereinafter called the "T.N.G.S.T. Act"). The assessing authority determined the total and taxable turnover as Rs. 5,40,71,477.14 and Rs. 4,72,81,254.72 respectively. In doing so the assessing authority disallowed exemption on a sum of Rs. 46,92,802 as freight charges and Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raightway refer to rule 6(c)(i) which runs as follows: "Rule 6: The tax or taxes under sections 3, 3-A, 4 or 5 shall be levied on the taxable turnover of the dealer. In determining the taxable turnover the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of a dealer- (a) and (b) ................. (c) all amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered into by the appellants with the purchaser was on f.o.r. destination. It must mean that the price of goods was intended to be inclusive of railway freight. They despatched the cement 'freight to pay' and while making out the bill, the railway freight paid by the purchaser was deducted. The payment made towards the railway freight by the purchaser must be regarded as advance payment towards th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 982] 51 STC 171 (Mad.). In that a Division Bench of this Court held that the "sale price", as per section 2(h) of the Central Sales Tax Act, means the entire price inclusive of the freight, packing charges and excise duty because the bargain between the parties was the total consideration including the abovesaid items. The Division Bench however, found on the facts of the case that rule 6(c) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeding to take the freight also as part of the sale price and thus include it in the turnover on which tax can be imposed." "Thus, it is clear that freight cannot be included in the taxable turnover unless it is found that it was paid as a part of the stipulation of the price of the goods sold. The law on the subject has thus to be understood as above." We are in agreement with the abovesai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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