Separate freight and octroi charges excluded from taxable turnover under the U.P. Sales Tax Act.

Where freight or delivery charges are separately charged, section 2 of the U.P. Sales Tax Act excludes that amount from turnover. On the factual finding that the assessee separately charged freight and octroi, those sums did not form part of the sale price for sales tax purposes. Cartage was therefore not includible in taxable turnover, and octroi was also excludable as part of delivery cost on the facts found. The question was answered in favour of the assessee.

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Issues: Whether cartage and octroi were liable to be included in the taxable turnover where freight and octroi were separately charged.

Analysis: The definition of turnover under section 2 of the U.P. Sales Tax Act excluded cost of freight or delivery when separately charged. On the factual finding that the assessee had separately charged freight as well as octroi, those amounts could not be treated as part of the sale price for taxation. Octroi, being part of the cost of delivery in the circumstances found, was likewise excludable from taxable turnover.

Conclusion: Cartage and octroi were not liable to be included in the taxable turnover, and the question was answered in the affirmative in favour of the assessee.

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