1971 (2) TMI 106

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....the purpose of disposal of these petitions, it would be sufficient if we refer to the facts stated in Writ Petition No. 3530 of 1970. The petitioner has a cement factory at Macherla engaged in the manufacture of cement. The selling price of the cement is fixed by the Central Government from time to time under the Cement Control Order at an uniform rate which is inclusive of excise duty and inter-State sales tax. The retail prices are fixed by the State Government by adding incidental charges such as cost of transportation from railway shed to stockists, godown charges, margin of profit for stockists, State sales tax, local taxes etc. The price fixed is split up so as to show the ex factory price, the selling agent commission, rebate on supp....

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....it cannot be said that the assessing authority was not justified in including the freight charges in the taxable turnover relating to the sale of cement. We are unable to find any material in support of the contention of the Government Pleader that the price for cement paid by the consignee to the petitioners includes the railway freight or freight charges. Annexure I of the material papers is a copy of the bill dated 19th May, 1969, sent by the petitioner in Writ Petition No. 3530 of 1970 to the buyer, viz., Director-General of Supplies and Disposals. The item supplied is portland cement for consumption at Markapur Road, ex R.K. Cements, Macherla. The cost of cement is shown as hereunder: Rs. 42,873.87 Excise duty ... " 10,188.33 ....