DEPUTY COMMISSIONER OF SALES TAX LAW BOARD OF REVENUE TAXES ERNAKULAM Vs. GENERAL ELECTRIC COMPANY OF INDIA LTD

JUDGEMENT

(1.) THE Revenue is the revision-petitioner in both these revisions. THE same assessee is the respondent in both the cases. We are concerned with the assessment years 1983-84 and 1984-85. THE Revenue assails the common order passed by the Sales Tax Appellate Tribunal, for the above two years, dated December 12, 1989. For both the years, the assessee claimed exemption on the amount paid towards handling charges which was incurred for taking out the goods from the godown and loading it in the vehicles of the purchasers. This was collected at the uniform rate of 1. 5 per cent of the sale price. THE claim was made under rule 9 (f) of the Kerala General Sales Tax Rules, 1963. THE assessing authority as well as the first appellate authority held that the handling charges were incurred by the assessee prior to the completion of the sale. THEy took the view that the sales to the customers were complete only when the goods were loaded in the vehicles and so the handling charges collected prior to the sale will form part of the sale price. In second appeal, the Sales Tax Appellate Tribunal held that the sale in this case was complete as soon as the goods are appropriated to the orders of the customers. On this basis, following the Bench decision of this Court in Deputy Commissioner of Sales Tax v. K. P. M. Kunhammecl [1978] 42 STC 298, it was held that the claim of the assessee should be allowed. It is thereafter, aggrieved by the aforesaid decision of the Appellate Tribunal, the Revenue has come up in revisions.

(2.) WE heard counsel for the Revenue - Special Government Pleader (Taxes), Shri N. N. Divakaran Pillai. It is conceded that handling charges were charged separately in the sale bills. The charges represented the remuneration for taking out the goods sold from the godown of the assessee and loading it in the vehicles of the purchasers and it was collected at the uniform rate of 1. 5 per cent of the sale price. The plea of the Revenue, that the sale is complete only when the goods are loaded in the vehicles of the purchasers, was found against by the Appellate Tribunal. The Appellate Tribunal found in paragraph 6 of the order that the sale in this case is complete immediately on the appropriation of goods to the orders of the customers. In short, there is transfer of the property in the goods to the purchasers. In the light of this finding, the charges incurred for taking out the goods sold from the godown of the assessee and loading it in the vehicles of the purchasers (handling charges") charged separately without including it in the sale price should he given deduction from the total turnover as per rule 9 (f) (i) and (ii) of the Kerala General Sales Tax Rules, 1963. The said conclusion arrived at by the Sales Tax Appellate Tribunal is justified in law. It is in accord with the Bench decision of this Court in K. P. M. Kunhammed's case [1978] 42 STC 298.