1962 (1) TMI 43

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....petition. They are (1) whether the petitioner who is a "dealer" under the Mysore Sales Tax Act, 1948, is entitled to deduct from his gross turnover the transport charges paid by him and included in his invoices; and (2) whether he is entitled to deduct from his gross turnover the royalty paid by him to the State Government. The petitioner is a dealer in iron ore. He sold goods to several custom....

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....sore Sales Tax Act, 1948, read with rule 2 of the rules mentioned in Schedule II. Rule 2(1), which is the only sub-rule with which we are concerned, reads: "The tax or taxes under section 3 or 5 or the notification or notifications under section 6(1) shall be levied on the net turnover of a dealer. In determining the net turnover the amounts specified in clauses (a) to (k) shall, subject to the....

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....We are unable to agree with the Sales Tax Appellate Tribunal that in the instant case the freight charges were a constituent part of the price fixed. The meaning of rule 2(1)(g) is quite plain and therefore there is no need to take any assistance from decided cases. If assistance is necessary from decided cases, we may usefully refer to the decision in Nabhi Brothers v. Commissioner of Sales Ta....

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.... of the railway freight and would therefore be outside the terms of rule 5(1)(g) (Rules framed under the Madras General Sales Tax Act) which requires that in order to enable a dealer to claim the deduction it should be charged for separately and not included in the price of goods sold. The conditions of the rule not having been complied with, the appellant was not entitled to the deduction in resp....