Freight and transport charges separately invoiced as actual buyer-related expense are excluded from sale price and taxable value.

Where freight and transport charges are separately shown in the invoice and are proved to be actual expenditure incurred for or on behalf of the buyer, they are excluded from sale price and assessable value under the Rajasthan Value Added Tax Act and the Central Sales Tax Act. The High Court accepted the factual finding that the goods were sold on an ex-work basis, the freight component was separately reflected, and no extra consideration was recovered towards transportation. On that basis, the charges could not be included in the taxable value. The revenue's precedent was distinguished because the statutory language and factual matrix were not the same.

---

---

Issues: Whether freight and transport charges separately shown in the invoice and incurred on actual basis could be included in the sale price or assessable value under the Rajasthan Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956.

Analysis: The dispute turned on the statutory definition of sale price and the effect of the explanation excluding freight and other transportation expenses when they are incurred for or on behalf of the buyer and charged separately in the invoice. The impugned order recorded a factual finding that the goods were sold on ex-work basis, the freight component was separately reflected in the invoices, and only actual transportation expense was recovered. On those facts, no extra consideration was received towards freight, and the amount could not be treated as part of the assessable value. The precedent relied upon by the revenue was distinguished because the statutory provisions were not pari materia and the factual setting was different.

Conclusion: Freight and transport charges separately charged in the invoice did not form part of the sale price or assessable value, and the revision was liable to fail.

Ratio Decidendi: Where freight or transportation expense is separately charged in the invoice and is shown to be actual expenditure incurred for the buyer, it is excluded from sale price and assessable value under the relevant sales tax statutes.

---