Post-delivery insurance and carrying charges are excluded from sale price when sale is complete at spot delivery.

Insurance charges and carrying charges incurred after spot delivery do not form part of the sale price under the Bombay Sales Tax Act, 1959. The statutory definition covers consideration for the sale and amounts charged for work done by the dealer in relation to the goods at or before delivery, but it excludes transit insurance when separately charged. Where the sale is completed on spot delivery and the goods are specific and deliverable, post-sale insurance and carriage expenses are not part of the consideration passing from buyer to seller. Retention of the goods after completion of sale is only in the capacity of a bailee, and reimbursement of those expenses does not change their character into sale consideration.

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Issues: Whether insurance charges and carrying charges incurred after spot delivery form part of the sale price under the Bombay Sales Tax Act, 1959.

Analysis: The definition of sale price covers the consideration payable for the sale and also includes sums charged for anything done by the dealer in respect of the goods at or before delivery, subject to the statutory exclusion for transit insurance when separately charged. On the facts found, the sale was completed at spot delivery, the goods were specific and deliverable, and the insurance and carrying expenses were incurred only thereafter. Such post-sale expenditure was not a component of the consideration passing from buyer to seller. After completion of sale, any retention of possession by the seller for insurance or carrying of the goods was only in the capacity of a bailee, with reimbursement not altering the character of the amount as sale consideration.

Conclusion: Insurance charges and carrying charges incurred after spot delivery do not form part of the sale price.

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