Inward freight on coal imports formed part of turnover where railway receipts remained in the dealer's name and no endorsement to buyers was shown.

Freight incurred for transporting coal from outside Uttar Pradesh into the State formed part of the dealer's turnover under the U.P. Trade Tax Act, 1948, because the railway receipts stood in the dealer's name and there was no proof of endorsement to the purchasers or delivery after such endorsement. Even where brick kiln owners paid the freight directly, the liability to pay remained with the dealer, so the payment was treated as made on the dealer's behalf. As inward freight paid before sale, it was attributable to turnover and liable to tax.

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Issues: Whether freight paid for coal transported from outside Uttar Pradesh to within the State, in circumstances where railway receipts stood in the dealer's name and endorsement in favour of the purchasers was not shown, formed part of the dealer's turnover under the U.P. Trade Tax Act, 1948.

Analysis: The coal was imported through railway against declaration form XXXI and the railway receipts were in the name of the dealer. There was no proof that the railway receipts had been endorsed in favour of the purchasers or that delivery was taken by them after such endorsement. Even if the freight had been paid directly by the brick kiln owners, the liability to pay freight remained that of the dealer, and such payment was treated as having been made on behalf of the dealer. Freight incurred for transporting goods from outside the State to inside the State was inward freight paid before the sale and was therefore attributable to the turnover.

Conclusion: Freight formed part of the dealer's turnover and was liable to tax under the Act.

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