Sale price excludes separately recovered service charges unless they form part of the agreed consideration for transfer of goods.

Separately recovered postage, trunk-call and bank charges are not part of sale price under the Bombay Sales Tax Act, 1959 unless the facts show that they formed part of the agreed consideration for the transfer of goods. The statutory definition of sale price is exhaustive and includes amounts payable for the sale together with sums charged for things done by the dealer in respect of the goods at or before delivery, but service charges merely included in the invoice do not automatically become consideration for sale. Where such charges are shown separately and are not proved to be part of the bargain or trade practice, they are excluded from turnover of sales.

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Issues: Whether postage, trunk-call charges and bank charges separately recovered in sale bills form part of the sale price and turnover of sales under the Bombay Sales Tax Act, 1959.

Analysis: The definition of sale price under section 2(29) is exhaustive and covers the amount of valuable consideration paid or payable for a sale, together with sums charged for things done by the dealer in respect of the goods at or before delivery. The amounts recovered towards postage, telephone or trunk-call charges and bank charges were shown separately in the bills and were not, on the record, shown to be part of the agreed consideration for the transfer of property in the goods. The surrounding circumstances did not establish that the buyer would not have obtained the goods unless those charges were agreed to be paid. Charges recovered for services rendered to customers in general cannot be equated with consideration for sale merely because they are included in the invoice. The Court distinguished cases where the additional recovery was shown by evidence or trade practice to be part of the price.

Conclusion: The separately recovered postage, trunk-call charges and bank charges were not part of the sale price and were not includible in the turnover of sales.

Ratio Decidendi: Additional amounts separately recovered from customers are not includible in sale price unless the facts show that they formed part of the agreed consideration for the sale; service charges for facilities rendered are not, by themselves, consideration for transfer of goods.

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