STATE OF ANDHRA PRADESH Vs. TEXMACO LIMITED

JUDGEMENT

(1.) THE State of Andhra Pradesh is the petitioner in this TRC filed under Section 22(1) of the A.P. General Sales Tax Act, 1957, for short the "Act". The respondent is the assessee under the Act. The short question that arose for consideration of the Sales Tax Appellate Tribunal was, whether the disputed turnovers relating to freight charges on the sales of non -levy cement was exigible to tax under the Central Sales Tax Act.

(2.) THOUGH the assessing authority as well as the appellate authority came to the conclusion that the freight charges formed part of the turnover, however, on the basis of the material placed before the Tribunal it recorded a categorical finding that delivery of goods was effected at ex -works price as shown in all the invoices issued by the appellant therein and that the freight charges were incurred for sending the cement in lorries which were shown separately and claimed. It also held that at the request of the customers who wanted the transportation to be made through the lorries so arranged by them at their option and not on account of any compulsion or pressure from the side of the appellants as such, and that in pursuance of such arrangement only the goods were transported and freight charges were collected by the appellant from the customers and paid to the transport authorities. On the basis of those findings it opined that the arranging of the transportation was only post service charges collected and therefore it was not includable in the taxable turnover of the appellant. In our view, the conclusion reached by the Tribunal based on the above said findings, is justified in law. In this view of the matter, it cannot be said that the Tribunal has erroneously decided the question of law. We find no merit in the T.R.C. It is accordingly dismissed. No costs.