Ex-factory loading charges and double taxation in consignment sales were excluded from taxable turnover on statutory principles.

Separately collected loading or delivery charges on ex-factory sales were excluded from taxable turnover where the statutory conditions for treating them as freight-related charges were satisfied, so relief followed on that item. Turnover arising from consignment sales could not be taxed again in the principal's hands where the same turnover had already suffered tax in the hands of the sub-agent, and the deduction for turnover already taxed applied. The same single sale could not be subjected to tax twice merely because it moved through a consignment chain, and the assessment was set aside to that extent.

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Issues: (i) whether loading charges collected separately on ex-factory sales were includible in taxable turnover; (ii) whether the turnover relating to consignment sales was taxable again in the hands of the principal when the same turnover had already suffered tax in the hands of the sub-agent.

Issue (i): whether loading charges collected separately on ex-factory sales were includible in taxable turnover.

Analysis: The turnover represented charges for loading or delivery where the contracts were on ex-factory price terms. Such charges were treated as part of freight and stood outside taxable turnover when the statutory conditions were satisfied. The exclusion under the sales tax rules also supported the same approach.

Conclusion: The loading charges were not includible in the taxable turnover and relief was granted to the assessee on this item.

Issue (ii): whether the turnover relating to consignment sales was taxable again in the hands of the principal when the same turnover had already suffered tax in the hands of the sub-agent.

Analysis: The same turnover had been included in the assessment of the intermediary and had been treated as exempt after notional assessment and notional payment of tax. The statutory deduction for turnover that had already suffered tax applied on that basis. Independently, the transaction was treated as a single sale, and the same transaction could not be subjected to tax twice merely because of the consignment chain.

Conclusion: The consignment turnover could not be taxed again in the hands of the principal and relief was granted to the assessee on this item as well.

Final Conclusion: The assessee succeeded on both disputed items, and the assessment was set aside to the extent of the two turnovers in question.

Ratio Decidendi: Where ex-factory loading or delivery charges are separately shown and satisfy the governing statutory conditions, they are excluded from taxable turnover, and a turnover that has already suffered tax in a consignment chain cannot be taxed again in the hands of another person for the same single sale.

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