COMMISSIONER SALES TAX LUCKNOW Vs. BHAGWAN AND CO

JUDGEMENT

(1.) THE question of law referred for our opinion is whether cartage and octroi were liable to be excluded from the taxable turnover of the assessee. THE question relates to the assessment year 1966-67. Clause (i) of section 2 of the U.P. Sales Tax Act defines "turnover" to mean : "the aggregate amount for which goods are supplied or distributed by way of sale or are sold by a dealer ....... Explanation II. - Subject to such conditions and restrictions, if any, as may be prescribed in this behalf - (i) the amount for which goods are sold shall include any sums charged for anything done by the dealer in respect of the goods sold at the time of or before the delivery thereof, other than cost of freight or delivery .... when such cost is separately charged; (ii) .............. (iii) ..............." THE Judge (Revisions) found as a fact that the assessee had charged freight as well as octroi separately. He looked into the bills and came to this conclusion. In view of this finding of fact, there can be no manner of doubt that the cost of freight and octroi was not liable to be included in the taxable turnover. It is evident that the octroi that was paid by the assessee was part of the cost of delivery, and hence was excludable. We, therefore, answer the question referred to us in the affirmative, in favour of the assessee and against the department. THE assessee will be entitled to costs, which are assessed at Rs. 200. Reference answered in the affirmative.