Separate freight charges excluded from taxable turnover where transportation was billed independently and not part of sale consideration.

Freight charged separately under a supply contract and tender conditions was treated as outside the assessee's taxable turnover where the bills distinctly showed transportation charges and that factual position was undisputed. Applying the governing decisions, the separate freight element was not part of the sale consideration and therefore could not be included in net turnover for sales tax purposes. The operative effect is that only the value of the goods, and not separately billed transportation charges, was brought within the taxable turnover.

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Issues: Whether freight charged separately formed part of the assessee's taxable turnover.

Analysis: The supply contract and tender conditions provided for separate indication of the cost of stones and transportation charges. The factual position that freight was separately charged in the bills was not disputed. In view of the governing decisions, freight separately charged and not forming part of the sale consideration could not be included in the taxable turnover.

Conclusion: Freight did not form part of the assessee's net turnover and could not be subjected to sales tax.

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