Separate post-sale service charges for bending and cutting steel are not taxable turnover when independent of sale consideration.

Separate charges for bending and cutting steel materials, fixed under a distinct arrangement and levied only when requested by purchasers, were held not to form part of taxable turnover under the Tamil Nadu General Sales Tax Act. Because the sale price was fixed ex-yard and the extra charges related to post-sale services facilitating delivery or transport, they were independent of the consideration for the goods. Explanation (2) to Section 2(r) applies only to sums charged in respect of goods where they form part of the sale consideration, so the charges were excluded from turnover.

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Issues: Whether bending and cutting charges collected from customers for preparing steel materials for easy transport formed part of the taxable turnover under the Tamil Nadu General Sales Tax Act.

Analysis: The price for the materials was fixed separately on an ex-yard basis, and the delivery order itself showed that bending and cutting, where required, were to be charged extra. The charges were not universally levied on all purchasers, but only on those who requested such work. They were payable under a distinct arrangement for services rendered after the sale, and were independent of the consideration for the goods sold. Explanation (2) to Section 2(r) of the Tamil Nadu General Sales Tax Act covers sums charged for things done by the dealer in respect of the goods at or before delivery only where such sums are part of the sale consideration. On the facts, the charges here were not part of the price of the goods.

Conclusion: The bending and cutting charges were not includible in the taxable turnover and the assessee succeeded.

Ratio Decidendi: Amounts charged separately under a distinct bargain for post-sale services rendered to facilitate delivery or transport are not part of taxable turnover unless they form part of the sale consideration for the goods.

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