Freight charges separately charged were deductible from turnover under Kerala sales tax rules when not included in the goods price.

Freight charges separately specified and charged by a dealer are deductible from turnover under rule 9(f) of the Kerala General Sales Tax Rules, 1963, where they are not included in the price of the goods sold. On the facts found, the transport charges were separately itemised and charged, so the statutory deduction was available. The Supreme Court agreed with the High Court that the assessees were entitled to the benefit of the rule, and the deduction was upheld.

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Issues: Whether freight charges separately specified and charged by the dealer could be deducted from the dealer's turnover under rule 9(f) of the Kerala General Sales Tax Rules, 1963.

Analysis: Rule 9(f) permits deduction of the amount separately specified and charged as freight, provided it is not included in the price of the goods sold. On the facts found by the High Court, there was material showing that the transport charges were separately specified and charged. The Supreme Court agreed with the High Court's reasoning and conclusions that the assessees were entitled to the benefit of the rule.

Conclusion: The deduction under rule 9(f) was rightly allowed, and the decision in favour of the assessees was upheld.

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