VVEDAVYASACHARYA Vs. STATE OF MYSORE

JUDGEMENT

(1.) Just two points come up for consideration in this revision petition. They are (1) whether the petitioner who is a "dealer" under the Mysore Sales Tax Act, 1948, is entitled to deduct from his gross turnover the transport charges paid by him and included in his invoices; and (2) whether he is entitled to deduct from his gross turnover the royalty paid by him to the State Government.

(2.) The petitioner is a dealer in iron ore. He sold goods to several customers. He also undertook to deliver those goods at the places mentioned by his customers as per terms of the contract entered into by him with his customers. The price for the ore sold was separately fixed. The purchaser had to bear the transport charges though the petitioner had to arrange for the transport of the ore sold. In the invoices given to the customers the price of the iron ore was separately mentioned. Similarly, the transport charges were separately mentioned. In other words, the price fixed for the iron ore was not inclusive of the transport charges. In those circumstances, we have to decide whether the transport charges also will have to be taken into consideration in determining the net turnover of the petitioner ?

(3.) Sales tax is levied on the petitioner under section 3 of the Mysore Sales Tax Act, 1948, read with rule 2 of the rules mentioned in Schedule II. Rule 2(1), which is the only sub-rule with which we are concerned, reads :