Separate freight charges were held outside taxable turnover where transport was optional and billed after sale.

Freight charges collected separately for transportation were not part of taxable sales turnover where the agreement showed ex-factory sale, transport at the buyer's option, and separate freight billing. The seller was treated as acting first as seller of the goods and then as carrier for the buyer, so the freight was a post-sale expense and not part of the sale price or turnover. The Court held that such separately debited freight was not includible in the assessee's taxable turnover.

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Issues: Whether freight charges collected separately under a transportation clause formed part of the sales turnover liable to sales tax.

Analysis: The agreement showed that the products were sold on an ex-factory basis, with transportation at the buyer's option and freight charged separately. The seller acted in a dual capacity, first as seller of the goods and then as carrier for transporting the goods on behalf of the buyer. The freight was raised by separate debit note and was therefore post-sale expenditure, not part of the sale price or taxable turnover.

Conclusion: Freight charges collected separately for transportation of the goods were not includible in the assessee's taxable turnover.

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