Separately charged transit insurance is excluded from turnover when it covers only delivery risk and not sale consideration.

Separately charged insurance charges for transit of goods to the buyer do not form part of turnover under the U.P. Sales Tax Act, 1948 when they relate only to transit risk and are billed apart from the sale price. Turnover includes the aggregate sale price and sums charged for anything done by the dealer in respect of the goods sold before delivery, but it excludes cost of freight or delivery when separately charged. Transit insurance of this kind is treated as an expenditure connected with delivery, not as consideration for the goods, and is therefore not taxable as part of turnover.

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Issues: Whether separately charged insurance charges for transit of goods to the buyer form part of the dealer's turnover under the U.P. Sales Tax Act, 1948.

Analysis: Turnover under section 2(i) of the U.P. Sales Tax Act, 1948 includes the aggregate sale price and sums charged for anything done by the dealer in respect of the goods sold before delivery, but excludes cost of freight or delivery when separately charged. The insurance charges in question were separately billed and related only to covering the risk of damage during transport to the buyer, not to any inseparable component of the sale price. Such transit insurance was treated as an expenditure connected with delivery and not as part of the value of the goods.

Conclusion: The separately realised insurance charges do not form part of turnover and are not taxable as such.

Ratio Decidendi: Where insurance charges for transport of goods to the buyer are separately charged and relate only to transit risk, they fall outside turnover as charges analogous to freight or delivery and not as part of the sale consideration.

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