STATE OF TAMIL NADU Vs. T H HUSSAIN

JUDGEMENT

(1.) THE department is the petitioner herein. Imperial bottlers, a proprietor concern, is the assessee. THE assessee is a manufacturer of soft drinks. In the assessment year 1979-80, the assessee claimed exemption on transport and handling charges to an extent of Rs. 1, 745. 15 and Rs. 14, 578 respectively, which was stated to be as Rs. 13, 507. 85 and not the figure as shown in the order of the Appellate Assistant Commissioner. THE assessing officer examined the claim and found that the vehicles and supplies effected to the parties outside the State, viz. , at Pondicherry and two separate bills were made one for the cost of the drinks and another for transport and handling charges. In other words, through the assessee had supplied the drinks at the buyers premises he had charged for the cost separately and other charges separately by making two bills. In the miscellaneous bill claiming transport and handling charges they were not shown separately but noted totally. THE spilt of figures were entered only in the sales register kept for accounting purposes. THE discount allowed was deducted from the miscellaneous bill. Deducting the discount of Rs. 2, 815. 60 allowed, the receipts on account of transport and handling charges were Rs. 13, 507. 85. However, assessing officer held that the receipts amount to pre-sale charges and hence they are includible in the sale price of the goods. Accordingly, the exemption claimed on transport and handling charges was disallowed by the assessing officer. On appeal, the appellate Assistant Commissioner confirmed the order passed by the assessing officer.

(2.) AGGRIEVED, the assessee filed a second appeal before the Appellate Tribunal. The Appellate Tribunal, on verification of the records, came to the conclusion that the cost of fright and delivery charges have been charged separately without including them in the prices of the articles sold. Hence the Tribunal held that the assessee is entitled to claim exemption on the turnover of Rs. 13, 507. 85. AGGRIEVED by this order, the department is in revision before this court.