High Court rules insurance charges on goods in transit are not part of dealer's turnover

The High Court of Madras dismissed the tax case, holding that insurance charges for goods in transit are not part of the dealer's turnover if they are separate from the price. The court ruled that such charges do not fall under Rule 6 exemptions as they are not part of the price and are incurred for goods' protection, not as revenue.

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The High Court of Madras dismissed the tax case, ruling that insurance charges incurred by a company for covering the risk in transit of goods cannot be considered part of the turnover of the dealer if they are independent of the price and not included therein. Rule 6 for exemptions or deductions only applies when the amount would be part of the price. The court found that insurance charges are incurred for something done in respect of the goods and do not form part of the turnover.

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