Separate transport charges for site delivery were held deductible from taxable turnover where sale and carriage were distinct bargains.

Where blue-metal was normally sold ex-quarry and delivery to the buyer's site was undertaken only on separate request, the bill books, invoices and affidavits showed two distinct bargains: one for sale of goods and another for transport. Because the transport charges were separately shown in the invoices and were not included in the price of the goods sold, they could not form part of the taxable sale price. On that basis, the transport charges were deductible from taxable turnover under rule 6(c)(i) of the Tamil Nadu General Sales Tax Rules, 1959, and the addition made by the Board was unsustainable.

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Issues: Whether the transport charges separately shown in the bills and invoices for delivery of blue-metal at the customer's site were deductible from the taxable turnover under rule 6(c)(i) of the Tamil Nadu General Sales Tax Rules, 1959.

Analysis: The materials on record, especially the bill books, invoices and affidavits, showed that the normal bargain was for ex-quarry supply of blue-metal, while delivery at the buyer's site was undertaken only when separately desired. In such cases, the price of blue-metal was charged and taxed separately, and the transport charges were shown as a distinct item not included in the price of goods sold. On that factual basis, the transaction disclosed two distinct bargains, one for sale of blue-metal and the other for transport, so the amounts collected towards transport could not be treated as part of the sale price.

Conclusion: The appellant was entitled to deduction of the transport charges under rule 6(c)(i), and the addition made by the Board was unsustainable.

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