Railway freight under a sale contract was excluded from turnover because it was not part of the sale price.

Railway freight paid on goods supplied to outstation customers was not included in turnover under the Andhra Pradesh General Sales Tax Act, 1957, because turnover comprises only the contractual consideration for the sale and sums charged by the dealer for things done in respect of the goods at or before delivery. On a reading of the contract as a whole, the purchaser bore the freight, the seller received only the invoice price less freight, and separate entry of freight in the invoice did not change the true sale price or tax character. Freight borne by the purchaser was therefore excluded from sales tax computation.

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Issues: Whether railway freight paid on goods supplied to outstation customers formed part of the turnover liable to sales tax under the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The statutory definition of "turnover" and the charging provision tax the aggregate amount set out in the bill of sale as consideration for the sale, including sums charged by the dealer for anything done in respect of the goods sold at or before delivery. On the contract read as a whole, the purchasers undertook to pay railway freight, which was deducted from the invoice amount, and the company received only the invoice amount less freight as the price of the goods. The mere fact that the invoice form showed freight separately or that sales tax had been collected on freight did not alter the true contractual position or convert freight into part of the sale price.

Conclusion: Railway freight was not part of the sale price or turnover, and it could not be included for levying sales tax.

Ratio Decidendi: Only amounts which form part of the contractual consideration for sale, or sums charged by the dealer for matters done in respect of the goods sold at or before delivery, can be included in turnover; freight borne by the purchaser under the contract is excluded.

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