Purchase price includes delivery-linked transport charges and subsidy when they form part of the contractual bargain.

Payments made by a purchaser to secure delivery and regular supply of goods, when tied to the contractual bargain or implied consideration for the sale, form part of the purchase price and are includible in taxable turnover. On that basis, freight or transport charges and plantation subsidy paid by the sugar mill for procurement of sugarcane were treated as part of the purchase price liable to purchase tax, because delivery at the factory gate and scheduled supply were integral to the transaction. Bifurcation of the invoice price did not change the true character of the payments.

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Issues: Whether the freight or transport charges and plantation subsidy paid by the sugar mill for procurement of sugarcane were includible in the purchase price liable to purchase tax under the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The Court followed the settled position that amounts paid by the purchaser in connection with the procurement of sugarcane, where they are linked to the supply and completion of the sale, form part of the consideration for the purchase. The contractual arrangement required delivery at the factory gate, and the transport payments were made to secure scheduled delivery and regular supply. Bifurcation of the invoice price did not alter the true character of the payments. The Court also held that the Tribunal's view accorded with the earlier Full Bench decision and the Supreme Court authorities on the same issue.

Conclusion: The transport charges and plantation subsidy were rightly included in the purchase price and subjected to purchase tax; the assessee's challenge failed.

Final Conclusion: The assessment on the impugned components of the sugarcane purchase price was upheld, and the tax case was dismissed.

Ratio Decidendi: Payments made by a purchaser to secure delivery and regular supply of goods, when they are part of the contractual bargain or implied consideration for the sale, constitute purchase price and are includible in taxable turnover.

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