Post-sale handling charges excluded from taxable turnover where risk passed on delivery to carrier under ex-godown sale terms.

Handling charges incurred after goods were handed over to the carrier were treated as post-sale expenses and not part of taxable turnover. The contract provided for ex-godown delivery, with risk and responsibility passing to the buyer on delivery to the carrier. Because the agreed price excluded handling charges for arranging carriers, loading and cooly expenses, the carrier acted as the buyer's agent for taking delivery. On that basis, expenses incurred after delivery to the carrier were outside the sale price and were correctly excluded from turnover.

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Issues: Whether handling charges incurred after delivery of goods to the carrier were liable to be included in the taxable turnover.

Analysis: The contract provided for ex-godown delivery, with risk and responsibility passing to the buyer once the goods were handed over to the carrier. The prices were agreed to be exclusive of handling charges for arranging carriers, loading and cooly expenses. On that footing, the carrier functioned as the purchaser's agent for taking delivery, and the expenses incurred thereafter were post-sale expenses not forming part of the sale price.

Conclusion: The handling charges were not includible in the taxable turnover and were correctly excluded, in favour of the assessee.

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