Freight charges remain taxable turnover unless separately charged and proved by the dealer under trade tax law.

Under the U.P. Trade Tax Act, freight or delivery charges may be excluded from turnover only when the dealer proves that they were separately charged and separately recovered from the customer. Where the dealer failed to produce the relevant contract or bills for the assessment year to establish a separate stipulation for freight, the exclusion could not be allowed. On that footing, freight formed part of the taxable turnover and the challenge to the Tribunal's order failed.

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Issues: Whether freight charges could be excluded from the taxable turnover under the U.P. Trade Tax Act, 1948 when the dealer failed to prove that such freight was separately charged.

Analysis: The definition of turnover under section 2(i) includes the aggregate amount for which goods are sold, but excludes freight or delivery cost only when such cost is separately charged. The dealer had not produced the relevant contract or bills for the assessment year in question to establish that freight was separately stipulated and separately recovered from customers. In the absence of such proof, the claim for exclusion of freight from turnover could not be accepted.

Conclusion: The freight amount formed part of the taxable turnover, and the challenge to the Tribunal's order failed.

Ratio Decidendi: Freight charges are excluded from turnover only if the dealer proves that they were separately charged from the customer.

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