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TMI Blog2023 (1) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... ot for a part of the sale price; B) For issuance of any appropriate writ or a writ in the nature of certiorari for quashing and setting aside order dated 30.08.2014 (Annexure-3) relating to the Financial year 2010-11 passed by the Joint Commissioner of Commercial Taxes (Appeal), Jamshedpur Division, Jamshedpur, in Appeal case no. SG-VAT-A-02-2014-15 contained in memo no. 474 dated 30.08.2014 to the extent it relates to tax liability on transportation charges/freight charges; C) For issuance of any appropriate writ or a writ in the nature of certiorari for quashing and setting aside the Assessment Order dated 10.09.2013 (Annexure-1,) relating to the Financial Year 2010-11 passed by the Learned Deputy Commissioner of Commercial Taxes, Singhbhum Circle, Jamshedpur, whereby and whereunder the said authority has rejected the claim of transportation charges/freight to the extent of Rs.61,52,526/- and treated it as a part of Gross Turnover/sale price and levied sales tax @ 12.5% treating freight as a part of sale price; D) For issuance of any appropriate writ or a writ in the nature of certiorari for quashing and setting aside the demand notice no. 7340 dated 10.09.2013 (Annexure-2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reight will be payable on actual or as per the stipulated condition, whichever is lower, against submission of documentary evidence. She contended that even as per Explanation III to section 2(xlviii) i.e. "sale price" the cost of transportation of the goods from the seller to the buyer will not form part of the "sale price", provided such cost is separately charged to the Buyer. In the present case, the cost of transportation/freight is separately charged from the Seller which is evident from the tax invoices annexed to the supplementary affidavit being Annexure-8 series from which it is evident that two tax invoices are being issued; one with respect to cost of goods and other with respect to transportation cost. She further submits that this practice of the petitioner was duly accepted by the respondent-Department for the previous year and also in subsequent years, wherein the respondent-Department had themselves treated freight as not being part of the "Sale price" under the JVAT Act which is evident from the earlier Assessment Order for the period 2009-10, 2011-12, 2012-13 (Annexure-7 series). However, the authority below only for the period 2010-11 i.e., period under consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point is again explicitly mentioned in the judgment of learned Commercial Taxes Tribunal, Jharkhand, Ranchi. In crux, the claim of the revenue is that separate invoices for transportation cost would not be a ground to deduct from the total GTO and that there is no illegality in the order of the tax authorities. 6. Having heard learned counsel for the parties and after going through the documents/judgments available on record the only issues involved in this case is whether the tribunal was justified in holding that the freight charges forms part of the "sale price" as per Section 2(xlviii) of the JVAT Act, when the same is being separately charged to the buyer. 7. Before going into the merit of the matter, it is pertinent to analyze the definition of "sale price" as defined in section 2(xlviii) of the JVAT Act which is quoted herein below:- "2(xlviii) "Sale Price" means the amount payable to a dealer as valuable consideration in respect of the sale or supply of goods, and shall not include tax paid or payable under this Act, by a person in respect of such sales. Explanation I- The amount of duties or fees or any sum levied or leviable or charged on the goods under the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein below:- "In the explanation referred to, if understood in the context, as it should be, 'any sums charged for anything done by the dealer in respect of the goods' can only relate to something done by the dealer in respect of the goods which involves transfer of property in the goods and for consideration. The further condition is that something should have been done in respect of the goods at the time of, or before the delivery of, the goods. So, what is chargeable to tax is not any sum charged at the time of, or before the delivery of, the goods, but any sum charged for transfer of property in the goods, involved in anything done by the dealer in respect of the goods at the time specified by the explanation. The explanation read in the abstract is, of course, of wide scope and may possibly take in any sum charged for anything done by the dealer in respect of the goods whether or not it involved also transfer of property in the goods. But, as we said, the fact that it is an explanation to the definition of 'turnover' and the 'turnover' is but the aggregate amount of the consideration of sales shows that it has to be read in the context and not de hors it." 9. It appears tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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