Freight charges separately invoiced are deductible from taxable turnover when incurred for a completed customer sale.

Freight charges separately specified in the invoice were deductible from taxable turnover under rule 6(4)(f)(i) where the dealer bought goods after a customer order and incurred freight to move them from the manufacturer to the delivery point. The rule applies to freight charged without being included in the sale price, and freight paid in connection with a completed sale agreed with the customer falls within that deduction. Freight incurred for purposes of the sale after the customer agreement was therefore excluded from taxable turnover. The broader question whether freight in other circumstances would also qualify was left open.

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Issues: Whether freight charges separately specified and charged in the invoice were deductible from taxable turnover under rule 6(4)(f)(i) of the Mysore Sales Tax Rules when the dealer purchased the goods after a customer order and incurred freight to bring them from the manufacturer to the place of delivery.

Analysis: Rule 6(4)(f)(i) permits deduction of freight when it is separately specified and charged without being included in the price of the goods sold. The relevant freight is that incurred by the dealer in the context of a sale agreed to be made to the customer, including freight paid to bring the goods from the place of manufacture to the place where they are to be delivered for the completed sale. Freight incurred for purposes of the sale, after the agreement with the customer, falls within the deduction and cannot be treated as taxable turnover. The Court declined to decide the broader question whether freight incurred in other contingencies would also be deductible.

Conclusion: The freight in question was deductible and could not be included in the taxable turnover.

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