1969 (7) TMI 93

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...., Advocate, with him), for the respondent.   S.V. Gupta, Senior Advocate (A.G. Ratnaparkhi, Advocate, with him), for the appellant.   --------------------------------------------------   The judgment of the court was delivered by   SHAH, AG. C.J.-The appellant-company is registered as a dealer in "Indian made foreign liquor" under the Kerala General Sales Tax Act, 1....

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.... "freight and handling charges." In proceedings for assessment of sales tax for 1963-64 the company claimed under rule 9(f) of the Kerala General Sales Tax Rules, 1963, Rs. 59,188.99 as an admissible deduction in respect of charges for "freight and handling charges" collected from the customers, in the computation of the taxable turnover. The Sales Tax Officer rejected the claim, and the order ....

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....arges" of goods from the factories to the warehouse at Ernakulam is liable to be excluded from the taxable turnover and the taxing authorities and the High Court were in error in refusing to allow the deduction. It is common ground that the sale of the liquor took place in Ernakulam. The company arranges to transport liquor for sale from the factories to its warehouse at Ernakulam. It was not b....

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.... charges which are incurred by the dealer either expressly or by necessary implication for and on behalf of the purchaser after the sale when the dealer undertakes to transport the goods and to deliver the same or where the expenditure is incurred as an incident of sale. It is not intended to exclude from the taxable turnover any component of the price, expenditure incurred by the dealer which he ....