NUCHEM PLASTICS LTD Vs. STATE OF HARYANA

JUDGEMENT

(1.) THE Sales Tax Tribunal has referred the following five questions to us for our opinion under Section 42 of the Haryana General Sales Tax Act, 1973.

(2.) THE manner in which question No. (ii) has been framed shows that, admittedly railway freight is not made part of the price of the goods sold. Obviously, therefore, the sales tax authorities could not, with any justification, impose sales tax on amount spent as railway freight because sales tax is to be imposed on the price of the goods sold. The view which we have taken finds further support from a judgment of their Lordships of the Supreme Court in Hyderabad Asbestos Cement Products Ltd. v. State of Andhra Pradesh [1969] 24 S. T. C. 487 (S. C. ).