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TMI Blog1991 (3) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... he freight charges and imposing penalty and interest thereon. The facts of the case giving rise to this revision petition may be summarised thus. 2. On December 17, 1986, the business premises of the petitioner was surveyed. It was noticed that the amounts of freight recovered from the buyers were not included in the taxable turn over. After giving notice to the petitioner and hearing it, assessment order Under Section 9, Central Sales-tax Act, 1956 (hereinafter to be called 'the Central Act') read with Section 7-B of the Rajasthan Act was passed for the assessment years 1986-87 and 1987-88. Penalty Under Section 16(1) (e) and interest Under Section 11-B of the Rajasthan Act were also imposed. First appeal before the Deputy Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been taken into consideration and the law laid down in Hindustan Sugar Mills' case has correctly been applied. 5. It is the admitted case of the parties that the amounts of freight paid by the assessee-petitioner for transporting the goods from Udaipur to Asarwa (Ahmedabad) were separately recovered by the assessee from the buyers, these amounts were not included in the bills & vouchers through which the goods were sold and the buyers paid the amounts of freight. Section 2 (p) of the Rajasthan Act defines 'sale-price' as under: (p) " Sale-price" means the amount payable to a dealer as consideration for the sale less any sum allowed as cash discount according to the practice normally prevailing in the trade, but in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice. As already observed above, cost of freight was not included in the bills and vouchers and it was separately charged. The assessee-petitioner filed photostat copies (papers no. 69 to 74) of its debit notes sent to M/s Orient Paper Mills, Brijraj Nagar and M/s India Paper Pulp, Hazinagar (West Bengal). All of them are in same language. One of them (paper no. 69) runs as under: MKU/85-86/25/83 17/3/1986 M/s Orient Paper Mills, P.O. Brajrajnagar, Dist. Sambalpur, ORRISA. DEBIT NOTE Being the amount debited to your account on account of Transportation charges cash paid by us on behalf of you from Udaipur to Asarwa (Ahmedabad) 24.840 Tons @ Rs. 110/- P.M.T. Soapstone powder supplied to you vide our Bill No.MKU/85-86/248 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arwa and subsequently it was recovered by the assessee from M/s India Paper Pulp by sending debit notes. The question for consideration before the Tribunal was whether the freight was a component of the sale-price or was independent of it. Condition no. 2 speaks about the delivery of goods at Asarwa. It does not speak either about the sale-price or the payment of freight charges. Condition no. 4 clearly specifies the basic price to be Rs. 435/- per metric ton. This has been repeated in condition no. 6(3). This aspect of the case was not considered by the Tribunal. Even in Hindustan Sugar Mills v. State of Rajasthan (1979) 43 STC 13(RAJ), it has been observed as under: There may be a case where the contract of sale may not be f.o.r. destin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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