2010 (9) TMI 977

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....and consequently, claimed exemption from payment of tax in view of the definition of "turnover" as contained in section 2(i), Explanation II(i) of the Trade Tax Act, 1948. The assessing authority disallowed the exemption against which an appeal was filed which was allowed and the matter was remitted back to the assessing authority. The assessing authority passed a fresh assessment order, which was verbatim with the earlier assessment order and again disallowed the exemption. The revisionist being aggrieved, filed an appeal which was rejected and thereafter preferred a second appeal before the Trade Tax Tribunal which was also dismissed. For the assessment year 1999-2000, the exemption was again disallowed and ultimately the second appeal....

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....elivery thereof, other than cost of freight or delivery or cost of installation or the amount realised as trade tax on sale or purchase of goods, when such cost or amount is separately charged." The aforesaid provision clearly indicates that if freight and trade tax is charged separately and is also realised separately then the amount, so realised, cannot be treated as part of the turnover. The tax liability with regard to freight charges and trade tax can only be fixed on a categorical finding being given, namely, that the freight charges and trade tax has not been realised separately and that it was inclusive of the price of the goods sold. It was, therefore, incumbent upon the assessing authority to examine all the bills and give a sp....

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....yderabad Asbestos Cement Products, U.P. Border Gaziabad v. Commissioner of Sales Tax, U.P., Lucknow [1999] 114 STC 564 (All); [1999] 14 NTN 90, it was held that insurance charges raised separately in the bills, which is covered under cost of delivery, does not form part of turnover and that the dealer is entitled for exemption under sub-clause (i) of Explanation II of section 2 of the Act. Similar view also held in CST v. M.P. Traders [1979] LD 144, Tata Timken Limited, Noida v. Commissioner of Trade Tax [1999] UPTC 685. In State of Karnataka v. Banglore Soft Drinks Pvt. Ltd. [2000] 117 STC 413; [2000] 10 SCC 531, the Supreme Court also held that where freight charge was collected separately, the same was not includible in the taxable tu....