Controlled sale price includes freight when statutory pricing is on an f.o.r. destination basis, barring turnover deduction.

Statutory price fixation on an f.o.r. destination basis meant freight formed part of the controlled sale price under the Cement Control Order, 1961. The seller was therefore treated as bearing freight within the fixed price structure, and the purchaser's payment of freight at destination on the seller's behalf did not change the character of that price. As the controlled price was inclusive of freight, the freight component could not be separately deducted from the assessee's taxable turnover, and the deduction claim failed.

---

---

Issues: Whether freight paid by the purchaser at the destination under the Cement Control Order, 1961 could be deducted from the assessee's taxable turnover.

Analysis: The price of cement was fixed by the statutory control order on a f.o.r. destination basis, so the seller was under an obligation to bear freight as part of the controlled price. The arrangement by which the purchaser paid freight at destination on behalf of the seller did not alter the character of the statutory price. Since the controlled price was inclusive of freight, the freight component could not be separately carved out on the footing that the turnover was the controlled price less freight.

Conclusion: The freight paid by the purchaser was not deductible from the taxable turnover, and the assessee's claim failed.

Ratio Decidendi: Where a statutory price fixation makes the sale price f.o.r. destination and freight forms part of that controlled price, freight paid by the purchaser on behalf of the seller cannot be excluded from turnover as a separate deductible item.

---