Freight charges form part of taxable turnover where title passes on dispatch and buyer bears the transport cost.

Freight charges borne by the purchaser were includible in the assessee's taxable turnover because the agreement showed only an accommodation payment by the assessee followed by recovery from the buyer. Clause 4(e) did not defer transfer of title until seven days after arrival; it merely regulated the buyer's right to notify defects within that period. The goods were treated as having passed to the buyer when put on rail, so the freight element remained part of turnover.

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Issues: Whether the freight charges were liable to be included in the assessee's taxable turnover.

Analysis: The agreement between the parties showed that the freight charges were borne by the purchaser, though the assessee initially paid them by way of accommodation and later recovered them. Clause 4(e) did not postpone the passing of title to the goods until the expiry of seven days after arrival at destination; it only regulated the buyer's right to notify defects within that period. The goods were treated as having passed to the buyer when put on rail, and the freight element did not cease to form part of the turnover on that account.

Conclusion: The freight charges were includible in the assessee's taxable turnover.

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