Separate freight charges excluded from taxable turnover where bills disclose freight separately, defeating contrary inclusion under sales tax law.

Freight separately charged in the assessee's bills was not includible in taxable turnover under section 11(8) of the U.P. Sales Tax Act, 1948, because the controlling legal position treats separately disclosed freight as outside the taxable turnover. The Tribunal had nonetheless directed inclusion despite the bills expressly showing the freight amount separately, but that approach was unsustainable on the applied legal principle. The Court therefore held that separate freight charges could not be brought into the taxable turnover, and the petition succeeded.

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Issues: Whether freight separately charged by the assessee was liable to be included in the taxable turnover under section 11(8) of the U.P. Sales Tax Act, 1948.

Analysis: The Tribunal had found that the bills issued by the assessee separately disclosed the freight amount, but nevertheless directed its inclusion in taxable turnover. The controlling legal position, as applied by the Court, was that where freight is separately charged, it does not form part of the taxable turnover. On that basis, the Tribunal's contrary view was unsustainable.

Conclusion: The freight separately charged by the assessee was not liable to be included in the taxable turnover, and the petition succeeded.

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