FOR destination turnover includes pre-delivery distribution s; casual sales of non-stock assets may still be taxable under the statute.

Under FOR destination supply terms, distribution-related expenses incurred before delivery, including insurance, loading, unloading, forwarding and depot charges, were treated as part of taxable turnover because they formed part of the delivery-linked cost of supply. The distinction between freight and distribution charges was rejected on the facts. The sale of machinery, cars and furniture by units not ordinarily dealing in those goods was also held taxable, because the statutory definition of business extended to casual sales. On both issues, the disputed turnover was sustained against the assessee.

---

---

Issues: (i) whether distribution charges incurred for insurance, loading, unloading, forwarding and depot-related expenses formed part of taxable turnover; and (ii) whether machinery, car and furniture sold by the assessee's units were liable to tax as casual sales.

Issue (i): whether distribution charges incurred for insurance, loading, unloading, forwarding and depot-related expenses formed part of taxable turnover.

Analysis: The supply was found to be on FOR destination terms. On that footing, expenses incurred before delivery of the goods were held to form part of turnover under the statutory definition. The distinction sought to be drawn between freight and distribution charges did not assist the assessee, because the charges were connected with the distribution of goods under the same contractual arrangement.

Conclusion: The distribution charges were held to be includible in the taxable turnover, against the assessee.

Issue (ii): whether machinery, car and furniture sold by the assessee's units were liable to tax as casual sales.

Analysis: The definition of business under the Act was treated as wide enough to include casual sales. The fact that the units were not ordinarily dealing in machinery, cars or furniture did not exclude such sales from taxation, because the statutory definition specifically brought such transactions within the taxable field.

Conclusion: The sale of machinery, car and furniture was held to be taxable, against the assessee.

Final Conclusion: The revision failed on both substantive questions, and the assessment of the disputed turnover was sustained.

Ratio Decidendi: Where a sale is on FOR destination terms, pre-delivery distribution-related expenditure forms part of turnover, and sales of assets not ordinarily traded in by the dealer may still be taxed if the statute treats casual sales as business.

---