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TMI Blog2013 (4) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... d the goods are sold. The title of goods passes when it is delivered to the transporter either at the pick-up points or at the railway station. Therefore, three authorities have rightly held that the handling charges and packing charges do not constitute cost of delivery, on the contrary, they form part of sale price. In that view of the matter, we do not see any merit in these petitions. Revision dismissed. - STRP Nos. 263, 264 of 2012 - - - Dated:- 24-4-2013 - KUMAR N. AND MANOHAR B., JJ. ORDER:- The order of the court was made by N. KUMAR J. These revision petitions are directed against the order 1 dated August 1, 2011 passed by the Karnataka Appellate Tribunal holding that charges incurred by the assessee prior to sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing representatives are accepted and confirmed, the appellant executes the orders by the following modus operandi: The required quantity, variety and grade of arecanut is removed from the godown. The arecanut is filled into single or double gunny bags as per instruc tions of the purchasers conveyed by the selling representatives and are packaged into bags each containing 60 kgs. The packages are duly stitched by jute twine. Arecanut contained in the gunny bags are thereafter transported to the pick-up points of the transporter or to the railway station for onward transport to the destinations of the purchasers by goods vehicle by road or by railways as the case may be. 4. Thus the appellant submits that in respect of arecanut sold in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. A reading of the aforesaid provision makes it clear that sale price 7 means the amount payable to a dealer as consideration for the sale of any goods. However, the amounts, which are deductible out of the sale price are (a) cash discount, (b) cost of price, (c) cost of delivery and (d) cost of installation. In cases where such cost is separately charged, excluding the aforesaid cost, the sale price includes any sum charged for anything done by the dealer in respect to the goods at the time of or before delivery thereof. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchasers conveyed by the selling representatives and are packaged into bags each containing 60 kgs. The packages are duly stitched by jute twine. Arecanut contained in the gunny bags is thereafter transported to the pick up points of the transporter or to the railway station for onward transport to the destinations of the purchasers by goods vehicle by road or by railway as the case may be. Therefore the assessee does not take responsibility of delivering the goods at the door step of the purchaser. The contract is to transport the goods to the pick-up points of the transporter or to the rail way station. Therefore there is no obligation on the part of the assessee to deliver the goods to the purchasers at their door steps and in other w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods in deliverable state and incidental to the same fall within the defi nition of section 2(h) of the Act. When goods are packed in gunny bags at the time of or before delivery, the expenditure incurred for such packing and making goods to reach deliverable state forms part of sale price. In that view of the matter, in the instant case, arecanut cannot be sold as it is stocked in the godown. After the order is confirmed according to the speci fication of the purchaser, arecanut is removed from the godown and then according to his requirement it is filled into single or double gunny bags and then stitched by jute twine and transported to pick-up points to the transporters or to the railway station. All these acts are necessary to make goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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