Separate freight and insurance charges excluded from taxable turnover when billed apart from sale consideration.

Amounts separately recovered towards freight and insurance are excluded from taxable turnover where the statutory definition of turnover or sale price excludes separately charged freight or delivery charges. The same treatment applies to insurance charges when they are not part of the consideration for the sale itself. A factual finding that the dealer billed freight and insurance separately was consistent with those statutory definitions and the settled principle that such charges are not includible in taxable turnover.

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Issues: Whether freight and insurance charges, when separately charged by the dealer, form part of the taxable turnover.

Analysis: The definition of turnover under the U.P. Sales Tax Act, 1948 and the definition of sale price under the Central Sales Tax Act, 1956 exclude amounts charged separately towards freight or delivery, and the same principle applies to insurance charges where they are not part of the consideration for the sale itself. The Tribunal had found as a fact that the dealer had charged freight and insurance separately. That finding was consistent with the statutory definitions and with the settled legal position that such separate charges are not includible in taxable turnover.

Conclusion: Freight and insurance charges separately charged by the dealer do not form part of the taxable turnover.

Ratio Decidendi: Amounts separately recovered towards freight and insurance are excluded from taxable turnover when the statutory definitions of turnover or sale price expressly exclude separately charged freight or delivery charges.

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