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TMI Blog1995 (2) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... business of manufacture and sale of A.C.S.R. conductors, wire, etc. The assessee in its returns for assessment years under the U.P. Sales Tax Act and Central Sales Tax Act disclosed its taxable turnover. The amount received on account of freight and insurance charges from the purchasers was not included in the taxable turnover. A plea was taken that the amounts recovered as freight and insurance charges, which were billed separately, do not fall in its taxable turnover. The excise duty was also stated to be not a part of the taxable turnover. The above plea of the assessee did not find favour with the assessing authority. The excise duty and the freight and insurance charges were included in the taxable turnover and the assessee was accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I have heard the learned Standing Counsel appearing on behalf of the department and Sri R.R. Agarwal, Senior Advocate, for the assessee-dealer. 5.. The learned Standing Counsel has argued that the view taken by the Tribunal that freight and insurance charges are not part of the taxable turnover is wholly erroneous. According to him, the said view is contrary to the provisions contained in section 2(i) of the U.P. Sales Tax Act and section 2(h) and 2(i) of the Central Sales Tax Act. The learned Standing Counsel has submitted that the said finding of the Tribunal is not based on any evidence and that the Tribunal could not legally ignore law. According to the terms of the contract between the opposite party-dealer and the purchasing deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent issue and the benefit was not granted because the price of the commodity, i.e., cement in the said case was regulated by the Cement Control Order. As such, the taxable turnover with reference to cement could not be applied to the facts of the present case. It has further been submitted that the honourable Supreme Court in a later decision in Ramco Cement Distribution Co. Pvt. Ltd. v. State of Tamil Nadu [1993] 88 STC 151 has explained the position. According to the learned counsel, it has been held that but for the scheme and provisions of the Cement Control Order and their implications the assessee might have been entitled to succeed in excluding the freight charges in case the terms and conditions of the contract had stood alone. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct: Section 2(h): sale price means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged. 8.. A perusal of the above provisions of law under the U.P. Sales Tax Act and the Central Sales Tax Act respectively leave no doubt that freight and insurance charges, if charged separately, is not liable to be included in the taxable turnover of the assessee. The same view has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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