Concessional tax rate applies to freight charges in turnover when they form part of sale price and are covered by accepted C forms.

Freight charges forming part of the sale price and included in turnover are not treated as separate goods for tax purposes. Where the underlying sales transactions were supported by C forms that had been furnished and accepted by the assessing authority, the concessional rate applicable to those transactions extended to the freight component as well. On that basis, the assessee was held entitled to concessional tax treatment on the freight charges included in turnover, and the reference was answered in favour of the assessee.

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Issues: Whether freight charges included in turnover, though not separately shown in C forms, were taxable at the concessional rate where the charges related to transactions for which C forms had been furnished and accepted.

Analysis: Freight charges forming part of the sale price and included in turnover cannot be treated as goods by themselves. Where such charges relate to transactions covered by C forms produced by the assessee and acted upon by the assessing authority, the concessional rate applicable to those transactions extends to the freight component also.

Conclusion: The assessee was entitled to the benefit of the concessional rate on the freight charges included in turnover.

Final Conclusion: The reference was answered in favour of the assessee and against the department.

Ratio Decidendi: Freight charges included in turnover are taxable at the concessional rate when they form part of sale price and relate to transactions supported by accepted C forms.

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