DYER MEAKIN BREWERIES LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) The appellant-company is registered as a dealer in "Indian made foreign liquor" under the Kerala General Sales Tax Act, 1963. The company has a place of business in Ernakulam, in the State of Kerala. Liquor sold by the company is manufactured or produced in distilleries or breweries at different places in the States of U.P. and Haryana. Liquor is transported for sale by the company from its breweries and distilleries to its place of business at Ernakulam. It is the practice of the company to maintain a uniform "ex-factory price" in respect of each brand of liquor and liquor is sold at different centers after adding to the ex-factory price the appropriate amount attributable to freight and other charges. The company transports its goods from its factory to the warehouses maintained by it at Ernakulam and when selling liquor to the customers the company makes out separate bills for the ex-factory price and for "freight and handling charges."

(2.) In proceedings for assessment of sales tax for 1963-64 the company claimed under Rule 9(f) of the Kerala General Sales Tax Rules, 1963, Rs. 59,188.99 as an admissible deduction in respect of charges for "freight and handling charges" collected from the customers, in the computation of the taxable turnover. The Sales Tax Officer rejected the claim, and the order was confirmed by the Appellate Assistant Commissioner and by the Sales Tax Tribunal. A revision application filed before the High Court of Kerala was summarily dismissed. The company has appealed to this Court with special leave.

(3.) Rule 9(f) of the Kerala General Sales Tax Rules, 1963, provides : In determining the taxable turnover, the amount specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of the dealer....