Freight and forwarding charges separately billed are excluded from sale price and not taxable under the sales tax definition.

Freight and forwarding charges separately shown in invoices are excluded from sale price under the Central Sales Tax Act where they are separately charged from the consideration for sale. The definition of sale price includes amounts charged for work done in respect of goods before delivery, but it specifically excludes freight or delivery costs when shown separately. On the facts stated, the charges were separately reflected in the bills, so they could not be treated as part of sale price and were not liable to tax.

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Issues: Whether freight and forwarding charges separately shown in the invoice are includible in the sale price under section 2(h) of the Central Sales Tax Act and liable to tax.

Analysis: The definition of sale price contains a basic part covering consideration for the sale and an inclusive part covering amounts charged for things done in respect of the goods before delivery, but it excludes the cost of freight or delivery where such cost is separately charged. On the facts found, the freight and forwarding charges were shown separately in the bills. Even if those charges did not form part of the sale consideration, they fell within the exclusion attached to the definition and could not be treated as sale price.

Conclusion: The freight and forwarding charges were not includible in the sale price and were not taxable.

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