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TMI Blog2009 (10) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... after for the purpose of drying and then transporting to his place is quite natural and it can only be post-sale expenditure and at no stretch of imagination, it could be concluded or arrived at as pre-sale expenditure. When this question of fact, which has been clearly upheld by both the appellate authorities concerned, we have no hesitation in accepting the question of fact and there is no need to make our interference with the finding of fact. As decided in Gwalior Rayon Silk Manufacturing and Weaving Co. Ltd. v. State of Tamil Nadu [1980 (9) TMI 262 - MADRAS HIGH COURT] the transport charges, which was incurred by the assessee, in respect of delivery of goods from the Forest Department, would not attract levy of charges under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute was whether the subsequent transport charges effected from the plant should be included or not. The assessing officer assessed the total purchase value of the fly ash under section 7A of the TNGST Act inclusive of the transportation charges, loading, unloading and clearing charges, as given in the table below: The assessing officer, besides imposing tax on such purchase value, also imposed penalty under section 12(3)(b) of the TNGST Act. Aggrieved against the order of the assessing authority, the respondent herein filed an appeal before the Deputy Commissioner (CT) Appeals, and took a stand that the price of the fly ash was ex-site and that the fly ash was only a wastage or waste product for the thermal power station; that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir factory by incurring expenditure towards clearing, drying, etc., which worked out to Rs. 2,88,45,683 for the year 1995-96 and the expenses were part and parcel of the procurement of fly ash itself; that the expenses were incurred in pursuance of such purchase of the fly ash, and therefore, they were includible in the total purchase value for computation of taxable turnover liable to tax under section 7A. The Tribunal considered the contentions made on either side in detail and ultimately came to the conclusion relying upon the judgment of this court in Gwalior Rayon Silk Manufacturing and Weaving Co. Ltd. v. State of Tamil Nadu [1982] 49 STC 73 and the judgment of High Court of Orissa at Cuttack reported in P. R. Tata Co. v. Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, who, on his own motion and volition, had engaged transporters, dried it there and then transported it from the thermal power station. Even as per the contract of agreement entered into between the parties, such material should be removed at the cost of the dealer from the site at his own risk and expenses. Therefore, it is quite natural and legal that the sale comes to an end the moment the sale price is paid by the dealer to the thermal power station and the delivery is accepted by the dealer at that point of time ex-site itself. Therefore, whatever expenses which the dealer incurs thereafter for the purpose of drying and then transporting to his place is quite natural and it can only be post-sale expenditure and at no stretch of imagin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to point out one thing with which there cannot be any controversy. As we pointed out already, out of the two amounts referred to earlier, Rs. 90,525 represents the amount paid by the assessee to the Forest Department and the other amount of Rs. 2,00,990.56 represents the transport and extraction charges incurred by the assessee. It was not the case of the Department that any part of this amount was paid to the Forest Department or formed part of the consideration for obtaining the coups in question. So long as this Rs. 2,00,990.56 was not paid by the assessee to the Forest Department as consideration for obtaining the coupe and remained only as expenditure incurred by the assessee, this amount cannot come within the scope of the Tamil Nad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf was to pluck the harida, collect, transport and crush the same. None of these things was done by the seller and was accordingly not to be included in the purchase price. 6.. The taxing authorities therefore exercised their jurisdiction wrongly and acted contrary to law in holding that the purchase price included collection, transport and crushing charges incurred by the petitioner. Furthermore, factually also, both the authorities have given a categorical and clear finding, and therefore, there is no necessity to cause our interference in this regard. For the foregoing reasons, we are in full agreement with the decisions rendered supra by the Madras High Court as well as the decision rendered by the Orissa High Court, wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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