Separately charged transport costs are deductible from taxable turnover when they are not included in the sale price.

Transport charges separately specified and charged by the dealer were deductible from taxable turnover under rule 9(f) of the Kerala General Sales Tax Rules. The rule allows deduction of freight and delivery charges when they are separately shown and not included in the sale price of the goods. On the facts, the transport charges were separately recoverable under the contract, and the revenue's reliance on an earlier freight case was distinguished because that case involved freight forming part of the price before sale. The deduction claim therefore fell within the rule.

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Issues: Whether transport charges specified and charged separately by the dealer were deductible from taxable turnover under rule 9(f) of the Kerala General Sales Tax Rules.

Analysis: Rule 9(f) permits deduction of freight and delivery charges when they are separately specified and charged without being included in the price of the goods sold. On the record, the transport charges were shown separately. The earlier decision relied on by the revenue concerned freight incurred prior to sale and as part of the price component, whereas the present facts disclosed a contractual arrangement where the transport charges were separately recoverable. The deduction claim was therefore covered by the rule.

Conclusion: The assessee was entitled to deduction of the transport charges.

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