Separately charged post-sale handling costs are deductible from turnover when sale is complete before removal and loading.

Handling charges separately collected for removing sold goods from the seller's godown and loading them into the purchaser's vehicles were deductible from total turnover under the Kerala General Sales Tax Rules, 1963. The Tribunal found that the sales had already been completed on appropriation of the goods to the customer's orders, so property had passed before the handling activity. Because the charges related only to post-sale removal and loading, they did not form part of the sale price and were excluded from turnover. The assessee's claim was therefore rightly allowed.

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Issues: Whether handling charges separately collected for taking goods out of the seller's godown and loading them into the purchaser's vehicles were deductible from the total turnover under the Kerala General Sales Tax Rules, 1963.

Analysis: The charges were shown separately in the sale bills and represented remuneration for removing the sold goods from the godown and loading them into the purchasers' vehicles. The finding accepted by the Tribunal was that the sales stood completed on appropriation of the goods to the customers' orders, so the property in the goods had already passed before the handling activity. On that footing, the separately collected handling charges did not form part of the sale price and were deductible under the relevant turnover deduction rule. This conclusion was consistent with the prior Bench decision followed by the Tribunal.

Conclusion: The handling charges were deductible from the total turnover and the assessee's claim was rightly allowed.

Ratio Decidendi: Where sale is complete on appropriation of goods to the customer's order and handling charges are separately charged for post-sale removal and loading, such charges are deductible from turnover and do not form part of the sale price.

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