Separately charged handling and labour charges excluded from taxable turnover when not part of the sale price.

Separately charged handling and labour charges that were not included in the sale price were excluded from taxable turnover under Rule 6(c). The Court accepted the Tribunal's factual finding that the charges were separately shown and actually paid, and held that the taxing authority could not disregard the contractual allocation merely because the charges appeared excessive or the business premises were in the same building. The reasonableness of such separately charged amounts was not a basis to deny exclusion from turnover.

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Issues: Whether separately charged handling charges and labour charges, not included in the price of the goods sold, were liable to be included in the taxable turnover.

Analysis: The Tribunal had found as a fact that the handling charges were separately charged and were not part of the sale price. On that footing, the Court held that the taxing authority could not disregard the contractual arrangement between dealer and customer merely because the charges appeared excessive or the business premises were in the same building. Where such charges are actually paid and shown separately, Rule 6(c) governs their exclusion from taxable turnover.

Conclusion: The separately charged handling and labour charges were rightly excluded from taxable turnover, and the revision failed.

Ratio Decidendi: Amounts separately charged under the contract and not included in the sale price are excluded from taxable turnover under Rule 6(c), and their reasonableness cannot be questioned to deny that exclusion.

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