Contractual proof required for excluding dock charges from taxable turnover when separately shown in invoices.

Dock charges separately shown in invoices are excluded from taxable turnover only if they represent a separately recoverable delivery cost arising from the parties' contract under section 2(14) of the Bombay Sales Tax Act, 1953. A separate invoice entry does not by itself prove the bargain; the dealer must show a contractual right to recover the charge and the purchaser's corresponding liability, whether by written or proved oral agreement. Where no such contract is proved, the bill format is not determinative and the exclusion is unavailable. The Tribunal was therefore not justified in excluding the dock charges from taxable turnover.

---

---

Issues: Whether dock charges separately shown in bills could be excluded from taxable turnover as cost of delivery under section 2(14) of the Bombay Sales Tax Act, 1953, in the absence of proof of a contractual right to make such separate charge.

Analysis: Section 2(14) of the Bombay Sales Tax Act, 1953 excludes from sale price the cost of freight or delivery only when such cost is separately charged. A separate entry in an invoice does not by itself prove the terms of the bargain. The right to recover a separate delivery-related charge and the purchaser's corresponding liability must arise from the contract between the parties. Where no written contract is produced and no oral arrangement is proved, the burden of establishing such entitlement remains on the dealer. The form of the bill is not determinative of the contract.

Conclusion: The Tribunal was not justified in excluding the dock charges from taxable turnover merely because they were separately shown in the bills. The answer is against the assessee and in favour of the Revenue.

---