STATE OF TAMIL NADU Vs. PARRY AND COMPANY

JUDGEMENT

(1.) THESE two tax cases relate to the assessment years 1962-63 and 1963-64 and raise a common question as to the taxability of certain transport charges. The respondent-assessee claimed that these freight charges have been separately charged for in their bills and, therefore, could not be included in the taxable turnover under rule 6(c) of the Tamil Nadu General Sales Tax Rules, 1959. But the assessing officer held with reference to the bills produced that the amounts claimed as deduction are pre-sale charges and therefore part of the price itself and liable to be included in the taxable turnover. This order was confirmed by the Appellate Assistant Commissioner. On the ground that the bills produced show the transport charges separately, the Tribunal allowed the appeal and had deducted the amount from the taxable turnover. The revenue has filed these revision petitions.

(2.) ALL the transactions in dispute were entered into between the respondent-assessee and one Messrs. K. P. V. Sheik Mohamed Rowther and Company, Madras-1. The respondents sold the goods as agents of Bengal Coal Company Limited. The sale took place in Madras and the bills produced by the respondent-assessee show that the goods are to be delivered at the moorings or the quay in the Madras Port. By way of illustration we may extract a typical bill, viz. : ------------ For the following goods supplied to : Rate Amount M.V. "Jalapratap" of Per 5-11-62 at East Quay Rs. nP. Rs. nP.East Quay Rs. nP. Rs. Tonnes Particulars 28.252 metric tonnes. High Volatile Selected "A" Grade Metric Steam Coal from tonne Dishergarh/Poniati 26.74 2, 529.01 Steam. (F.O.R. Colliery) Madras Sales Tax @ Steamer and railway freight and other 2.00 100 50.58 charges 73.04 M. Tonnes 7, 176.33-------- End : Ship's Receipt No. 250 on 9-11-63 (in duplicate). 9, 755.92 Bills for customs harbour overtime fees and also hire or of crane, if any, will be sent to you direct by them. -------- Total 9, 755 90 Rupees nine thousand seven hundred and fifty-five, naya paise ninety only. F.O.R./Stock/Madras/Delivery at your place For Parry and Co. Ltd. sent by goods/passenger/freight to pay paid at CR/RR Local. R.R. PWB/Lorry Receipt to. (Sd.)"

(3.) IN that case also, a company which manufactured liquor at various places in U.P. and Haryana transported the goods from its breweries and distilleries to its place of business in Ernakulam and sold them there. When selling the same, the company made out separate bills for ex-factory price and for freight and handling charges. The Supreme Court held that the freight and handling charges could not be excluded from the taxable turnover under rule 9(f) of the Kerala Rules. It appears to us that the facts in our case are very similar to the one decided by the Supreme Court. IN this case also the respondent-dealer had brought the coal from out-of-State places and while selling the same to the local purchasers had prepared the bill showing the price of coal ex-colliery and including the transport and other charges at a uniform rate per metric tonne. We, therefore, consider that the respondent is not entitled to a deduction of those charges from the taxable turnover. We, accordingly, allow these petitions and set aside the order of the Tribunal. The revenue will be entitled to its costs. Counsel's fee Rs. 150 in each case.