Freight deduction under sales tax rules is unavailable where transport cost forms part of purchase cost and sale price, not a separate sale charge.

Freight incurred at the purchase stage and later absorbed into the sale price could not be deducted from gross turnover as a separately charged amount under rule 5(1)(g) of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939. The deduction applies only where freight is specified and charged separately in relation to the sale transaction. Because the dealer's freight related to transporting goods to its place of business and formed part of the cost and sale price, and no freight was separately charged on the sales at Tirunelveli, the turnover reduction was not permitted.

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Issues: Whether freight paid at the purchase point and later included in the sale price could be deducted from gross turnover as a separately charged amount under rule 5(1)(g) of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939.

Analysis: The rule permits deductions only in respect of amounts such as freight when they are specified and charged separately in relation to the sale transaction. The dealer's freight was incurred when goods were purchased and transported to the place of business; it formed part of the cost and sale price, but it was not freight connected with the sales effected at Tirunelveli. Since the sales at the place of sale were not accompanied by any freight charge, the deduction provision did not apply.

Conclusion: The deduction was not allowable, and the assessment could not be reduced by excluding the freight amount.

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