AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2009 (10) TMI 872
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....nting loading charges, transport charges, unloading charges of fly ash as not includible in the purchase turnover for the purpose of levy of tax under section 7A of the Tamil Nadu General Sales Tax Act, 1959?" The order relates to the assessment year 1995-96. The assessee, viz. Chettinad Cement Corporation Limited had purchased fly ash from the Tamil Nadu Electricity Board, Mettur and transported the same from the Board to their premises. The question involved here was that whether the expenses incurred by the assessee in transporting the fly ash from the thermal power station to the assessee's plant was a pre-sale expense or a post-sale expense. It is no doubt admitted by both the parties that in respect of the levy of purchase tax, ....
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....rges, etc., on the ground that as per the agreement, the appropriation of the goods had taken place at the gate of the Thermal Power Station, Mettur Dam, and anything done or any expenses incurred subsequent to this was outside the sale contract entered into between the Thermal Power Station, Mettur Dam and the dealers and therefore, the amount paid as per the sale agreement to the tune of Rs. 38,96,615 for the year 1995-96 alone was liable to tax and not the transport or other charges. Aggrieved by the said finding and the order of the Deputy Commissioner (CT), Appeals, the State filed an appeal before the Sales Tax Appellate Tribunal for the assessment year 1995-96 in STA No. 1351 of 2001. In the grounds of appeal, the Revenue had contend....
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....Naziruddin, learned Special Government Pleader (Taxes) for the petitioner/State and Mr. N. Inbarajan, learned counsel for the respondent/assessee. The short question, which is to be answered in this case, is whether the expenses incurred by a dealer, who purchases the fly ash from the thermal power station, which is admittedly a waste product for the thermal power station, and when the delivery took place at the site of the thermal power station, such expenses incurred by the dealer in transporting such material (fly ash) from the premises of the thermal power station to that of the dealer, would construe as an expense called pre-sale expense or post-sale expense. Both the Deputy Commissioner (CT), Appeals as well as the Tribunal has given....
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....ct levy of charges under section 7A. The Tribunal, relying upon the said judgment, specifically gave a finding that only the post-purchase expenditure could be included and therefore, the finding of the Deputy Commissioner in setting aside the assessment made on the value of the purchase of the fly ash from the Electricity Board and the subsequent expenditure incurred by the assessee to bring the fly ash to his factory, is correct while dismissing the appeal filed by the State. In the judgment in Gwalior Rayon Silk Manufacturing and Wearing Co. Ltd. v. State of Tamil Nadu [1982] 49 STC 73, this honourable court, while dealing with a similar issue whether the transport costs involve transportation of wooden logs from the auction place by t....
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....e by the seller in respect of the goods at the time of or before delivery of such goods. Therefore, it is clear that before the delivery of goods, the thermal power station do not do anything insofar as the supply of goods is concerned. As it is stated that it is only a waste product, which has been directed to be removed, no further service or anything is done by the seller, whereas, it is the purchaser, who does everything after the purchase. Therefore, the findings rendered in the above decision in paragraph Nos. 5 and 6 squarely apply to the facts of the present case. Paragraph Nos. 5 and 6 of the said judgment are extracted hereunder: "5. In the present case harida was either on the tree or was to come subsequently. The seller did not....