Separately billed handling charges were deductible from taxable turnover as delivery-related expenditure under sales tax law.

Handling charges separately shown in bills were excluded from the sale price because section 2(h) of the Central Sales Tax Act, 1956 excludes separately charged freight, delivery, or installation charges from the taxable turnover. The authorities found the Hammali charges were separately billed and related to delivery expenditure, so they were deductible and not part of the sale consideration. The Revenue's reliance on an earlier decision failed because that case involved charges that formed part of the purchase price on its facts.

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Issues: Whether handling charges shown separately in the bills were deductible from the taxable turnover.

Analysis: Section 2(h) of the Central Sales Tax Act, 1956 excludes from sale price any sum charged for freight, delivery, or installation when such charges are separately charged. The authorities found that the handling charges, described as Hammali, were separately charged and separately shown in the bills. On those findings, the amount was treated as delivery-related expenditure and not as part of the sale consideration. The earlier decision relied upon by the Revenue was distinguishable because, on its facts, the disputed charges had formed part of the price paid by the purchasers.

Conclusion: The handling charges separately shown in the bills were deductible from the taxable turnover and were not includible in the sale price.

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