Separately recovered transport charges for brick delivery are deductible from taxable turnover when shown apart from sale consideration.

Transport charges separately recovered from customers for delivery of bricks are deductible from taxable turnover under rule 6(c) when they are shown apart from the sale price and not merged into the consideration. The fact that delivery is made at the customer's work-site does not, by itself, defeat the deduction if the freight is in fact charged separately in each transaction. On that footing, the freight falls within the rule and is excluded from turnover, making its inclusion unsustainable.

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Issues: Whether transport charges separately charged by the dealer for delivery of bricks to the customer's site were deductible under rule 6(c) while computing taxable turnover.

Analysis: Rule 6(c) is intended to exclude transport charges from taxable turnover where freight forms part of the overall consideration but is shown separately and not merged in the sale price. A deduction cannot be denied merely because the contract contemplates delivery at the customer's work-spot, if the transport charges are in fact separately recovered in each transaction. The contrary view rests on a misreading of the rule and a mistaken assumption that separate charging becomes irrelevant whenever delivery is to a place other than the kiln site. On the facts found, the freight was separately charged and therefore fell within the rule.

Conclusion: The assessee was entitled to deduction of the transport charges under rule 6(c), and the inclusion of those charges in the taxable turnover was unsustainable.

Ratio Decidendi: Where transport charges are part of the consideration but are separately recovered and not included in the sale price, they are deductible in computing taxable turnover under the relevant sales tax rule.

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