9911796707
TMI Blog2009 (8) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... n the basis of actuals, but on a assumption depending upon the distance of the local dealers' show-room from the assessee's distribution point and varied from local distributor to distributor and was nevertheless was added in the invoices and the net amount was shown. Appeal dismissed. - 26 of 2009 - - - Dated:- 18-8-2009 - SHYLENDRA KUMAR D.V. AND ARAVIND KUMAR , JJ. ORDER:- The order of the court was made by ARAVIND KUMAR J. The petitioner has challenged the order dated January 21, 2009 passed by the Karnataka Appellate Tribunal in S.T.A. No. 249 of 2007. The petitioner is a private limited company engaged in the business and distribution of Yamaha motorcycles and is transporting the vehicles from Faridabad to Bangalor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Thus, the assessing authority has come to the conclusion that the goods are despatched from the depot and are handed over to the transporter, but not to the dealer or the consumer and the risk was with the assessee only till the delivery of goods. It is also held by the authorities that the transporter was appointed by the assessee itself and the freight charges were paid by the assessee only and hence, the authorities have raised a demand for a sum of Rs. 28,76,286 being the difference of tax amount which was to be included in the total turnover which had escaped assessment by order dated March 31, 2006. The assessing officer has held that the assessee had supplied the goods or made available the goods at the door-steps of the deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure is not an item of expenditure even if it is separately shown. It held that the appellant had failed to produce any agreement entered into by it with the dealers to indicate that the freight charge is not a part of the sale price. It is also noticed that the appellant has failed to prove that they have entered into separate contract for undertaking the transportation of the vehicle and hence freight charges paid is excluding the sale price and it was paid at the instances of the buying dealer and has come to the conclusion that the appellant had miserably failed in proving that the risk of transit was with the buyers and not with the appellant and the delivery was completed at the depot and rejected the appeal by order dated Januar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on examination of records as also on the basis of the reply given by the assessee itself that the freight charges were not included in the total taxable turnover and the assessee though fixed uniform selling rate in respect of various models of vehicles throughout the State, it had fixed the freight charges at different rates and had charged the same in the tax invoices depending upon the distance of the places of the dealer located in the various parts of the State. The dealers have paid the freight charges charged by the appellant in terms of the invoices raised by the petitioner, which had not been included in the total taxable turnover. This is the clear finding given by the first appellate authority while considering the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mity in rate, freight charges at different rates have been charged in the tax invoices depending on the distance of the place of the dealers located in various parts of the State. The dealers have paid the freight charges charged by the appellant. In very same judgment, their Lordships have noticed that in the decision of Hindustan Sugar Mills Ltd. v. State of Rajasthan reported in [1979] 43 STC 13 (SC), to the following effect: The sale price was statutorily fixed under the provisions of the Cement Control Order, 1967. There was a provision for reimbursement of the amount of expenditure actually incurred by the manufacturer on freight. However, the amount of freight had to be paid to the manufacturer initially as part of the sale p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
