Incidental delivery charges form part of gross turnover, and interest runs from the assessment order creating liability.

Incidental delivery-related charges such as dami, dalali and mandi were treated as part of gross turnover because expenses connected with taking delivery of agricultural produce, including packing, labour, stitching and carriage, form part of the aggregate purchase amount. Interest was held chargeable from the date of the assessment order that crystallised the tax demand, not from an earlier order in another year. The article therefore states that incidental charges linked to effective delivery are includible in turnover and that interest runs from the assessment order creating the liability.

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Issues: (i) Whether incidental charges such as dami, dalali and mandi were liable to be included in the gross turnover. (ii) Whether interest was chargeable from the date of the assessment order in question or from the date of the earlier assessment order by which incidental charges were first taxed.

Issue (i): Whether incidental charges such as dami, dalali and mandi were liable to be included in the gross turnover.

Analysis: The issue was governed by the earlier decision holding that amounts incurred for taking delivery of agricultural produce, including packing, labour, stitching, carriage and similar incidental expenses, form part of the aggregate purchase amount. Incidental charges connected with effective delivery were therefore treated as includible in turnover.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Issue (ii): Whether interest was chargeable from the date of the assessment order in question or from the date of the earlier assessment order by which incidental charges were first taxed.

Analysis: The charge of interest was held to arise from the date of the assessment order creating the demand, and not from the date of any earlier order in another year. The governing principle applied was that interest becomes payable from the passing of the assessment order that crystallises the liability.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Final Conclusion: The inclusion of incidental delivery-related charges in gross turnover and the levy of interest from the assessment order were both upheld, leaving the appeals without merit.

Ratio Decidendi: Incidental charges incurred for effective delivery of goods form part of gross turnover, and interest on the tax demand is chargeable from the date of the assessment order that determines the liability.

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