Sale price inclusion of pipeline gas charges turns on whether amounts form part of the agreed price.

Charges received for supply of industrial gases through pipeline were held to form part of the agreed sale price under the Bengal Finance (Sales Tax) Act, 1941. The definition of sale price was treated as materially similar to earlier authorities, and the governing principle applied was that an amount included in the price of the goods remains within sale price under the first limb of the definition. The separate exclusion for freight or delivery costs applies only to the inclusive limb and cannot remove amounts that are already part of the contractual price. On that interpretation, the facility charges were not excludible from sale price.

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Issues: Whether the charges received for supply of industrial gases through pipeline could be excluded from the sale price as facility charges under the Bengal Finance (Sales Tax) Act, 1941.

Analysis: The relevant definition of sale price in the 1941 Act was held to be materially similar to the definitions considered in earlier decisions. The controlling principle applied was that where an amount forms part of the agreed price of the goods, it falls within sale price under the first part of the definition. The exclusion relating to freight or delivery cost separately charged operates only against the inclusive part of the definition and cannot exclude amounts already constituting part of the price. On the facts, the appellant's attempt to distinguish the earlier authorities did not displace the binding effect of the settled interpretation.

Conclusion: The charges were not excludible from sale price and the challenge failed.

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