Sale price includes cartage and transport charges when the contract is all-inclusive and no separate freight liability exists.

Cartage and transport charges shown separately in invoices were held to form part of the sale price where the underlying contract fixed an all-inclusive price and delivery at the purchaser's site was part of the seller's obligation. The statutory exclusion for freight or delivery cost applies only when such cost is separately charged under the contract and the purchaser is bound to pay it as a separate liability. Mere invoice splitting could not change the original bargain or create a distinct charge. The charges therefore could not be deducted from turnover of sales, and the issue was resolved in favour of the Revenue.

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Issues: Whether cartage and transport charges shown separately in the invoices could be deducted from the turnover of sales when the underlying contract provided an all-inclusive price.

Analysis: The statutory definition of sale price included the valuable consideration payable to the dealer, while excluding freight or delivery cost only when such cost was separately charged. The decisive question was whether the dealer had a contractual right to make a separate charge and whether the purchaser was correspondingly bound to pay it. On the contract terms, the agreed rate was an all-inclusive price and delivery at the purchaser's sites was part of the seller's obligation. There was no contractual stipulation authorising a separate freight or cartage charge, and the mere splitting of the invoice amount could not alter the original bargain or create a separate liability in the purchaser.

Conclusion: The cartage and transport charges were part of the sale price and could not be deducted from the turnover of sales. The question was answered against the dealer and in favour of the Revenue.

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