Separately charged freight excluded from taxable turnover; suo motu revision held impermissible against a final appellate order.

Separately charged freight is excluded from sale price and taxable turnover where the contract, place of sale, and invoices show that freight was not part of the sale consideration under the Central Sales Tax Act. On that basis, the freight component could not be added to taxable turnover. The document also states that the Appellate Authority could not invoke suo motu revision against a final appellate order where the statutory scheme barred further revision, making the revisional exercise without jurisdiction. The challenge therefore succeeded, and the demand together with the connected appellate and revisional orders was set aside.

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Issues: (i) Whether freight charged separately from the buyer forms part of the sale price and is includible in taxable turnover. (ii) Whether the Appellate Authority could exercise suo motu revision over the appellate order in the manner done in the case.

Issue (i): Whether freight charged separately from the buyer forms part of the sale price and is includible in taxable turnover.

Analysis: The sale price under the Central Sales Tax Act excludes freight or delivery cost where such cost is separately charged. The decisive factors were the contract terms, the place where the sale was completed, and the invoices showing freight separately. On that basis, the freight component could not be treated as part of the consideration for sale or included in taxable turnover.

Conclusion: The issue was answered in favour of the assessee and against the revenue; separately charged freight was held not to be includible in sale price or taxable turnover.

Issue (ii): Whether the Appellate Authority could exercise suo motu revision over the appellate order in the manner done in the case.

Analysis: The statutory scheme treated the order of the Deputy Commissioner (Appeal) as final and beyond further appeal or revision, and the revisional power under the Madhya Pradesh VAT Act could not be invoked against such an order. The impugned revision was therefore without jurisdiction on the reasoning adopted from the governing precedent.

Conclusion: The issue was answered in favour of the assessee and against the revenue; the suo motu revisional exercise was impermissible.

Final Conclusion: The challenge succeeded on all substantial questions of law, and the impugned demand as well as the connected appellate and revisional orders were set aside.

Ratio Decidendi: Where freight is separately charged and the contractual and invoicing terms show that sale is complete without including freight in the sale consideration, the freight component is excluded from sale price and taxable turnover; additionally, a final appellate order cannot be reopened by an impermissible exercise of suo motu revision absent statutory authority.

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