GREAVES CHITRAM LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee, who has failed before all the authorities below, has preferred this revision under section 38 of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Act"). THE turnover no doubt relates to inter-State sale coming under the Central Sales Tax Act, 1956 and the relevant assessment year is 1983-84.

(2.) THE only question is whether the transportation charges to the extent of Rs. 2, 00, 000 and the insurance charges to the extent of Rs. 20, 000 from part of the 'sale price" as defined under section2(h) of the Central Sales Tax Act. THE assessee sold a crane to its purchaser for a total consideration of Rs. 21, 63, 675 which included the abovesaid two figures also, that is one for transpiration and another for insurance. All the authorities below have concurrently held that the abovesaid Rs. 2, 00, 000 representing charges and Rs. 20, 000 representing the insurance charges from part of the sale price. But, the learned counsel for the petitioner submits that the authorities below including the Tribunal have erred in holding that there abovesaid transportation charges and insurance charges form part of the sale price and in assessing the same to tax. THE assessee filed the purchase order dated October 1, 1983, received by it from its purchaser to contend that the abovesaid charges should not have been charged to tax as forming part of the sale price. THE relevant portions of the said purchase order, giving out the terms and conditions of the purchase, run as follows :

(3.) TOTAL .. Rs. 18, 96, 500