Freight deduction from turnover fails where invoices show an inclusive sale price and freight is not separately charged.

Freight charges were deductible from turnover only where they were separately specified and separately charged, and not included in the sale price of the goods. On the facts, the invoices reflected an inclusive F.O.R. or catalogue price with a fixed transport rebate, so the buyer paid only the agreed sale price and was not concerned with the seller's actual freight outlay. Because the freight formed part of the sale price, the statutory conditions for deduction were not met. The claim for deduction of freight from turnover was therefore not maintainable, and the decision against the assessee was upheld.

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Issues: Whether freight charges were deductible from turnover when the sale invoices showed the price as inclusive of freight and the freight was not charged separately.

Analysis: Deduction of freight was available only if the amount was specified and charged separately and was not included in the price of the goods sold. The invoices showed a catalogue or F.O.R. price with a fixed transport rebate, so the customer paid only the agreed price and was not concerned with the actual freight paid by the seller. On the facts, the freight formed part of the sale price and the conditions for deduction were not satisfied.

Conclusion: The claim for deduction of freight from turnover was not maintainable and the decision against the assessee was upheld.

Ratio Decidendi: Freight is deductible from turnover only when it is separately specified and charged and is not included in the sale price; if the invoice reflects an inclusive price, the deduction is not allowable.

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