SOUTHERN MOTORS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These appeals by special leave are against the judgment of the Karnataka High court in S. T. R. P. Nos. 1 to 6 of 1978 decided on 20/08/1985. By the impugned judgment, the High court set aside the order dated 27/07/1977, passed. by the Karnataka Appellate tribunal in favour of the assessee (appellants) by which the tribunal had held that departmental authorities were not correct in disallowing the delivery charges and transportation charges while computing the total and taxable turnover of the appellants. The tribunal held that the tax levied on the amount of delivery charges or transportation charges is not correct and that the delivery charges or transportation charges will not become part of the price of the goods. Accordingly, the tribunal set aside the levy of tax on the disputed turnover comprised of these amounts. The tribunal, in taking this view followed the decision of the Karnataka High court pertaining to some earlier periods of assessments for the same assessee which was rendered on the same set of facts.