2009 (8) TMI 1136

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....uestion involved is about the inclusion of distribution charges in the taxable turnover and whether the machineries sold by the Sugar Mills/Units are liable to tax. The applicant contended that the distribution charges are not part of the taxable turnover and since the applicant was not carrying on the business of machineries it was not liable to tax. The claim of the applicant was rejected by the Assessing Authority vide order dated 27.3.1987. 3. Being aggrieved by the assessment order, the applicant filed appeal. The appeal was allowed and the matter was remanded back to the Assessing Authority. 4. Being aggrieved by the order, both applicant as well as revenue filed appeals before the Tribunal. Both the appeals have been rejected by th....

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....ed upon the decision of this Court in its own case, M/s Modi Industries vs. Commissioner of Income Tax, reported in STI 1988 - 445. The Tribunal held that during the year under consideration the applicant claimed deduction of ₹ 14,22,915/- towards freight and ₹ 44,05,988/- towards distribution charges. The Tribunal held that the contract was FOR destination and, therefore, in view of the decision of the Apex Court in the case of S/s Hindustan Sugar Works vs. State of Rajasthan, reported in 1979 UPTC-21 such freight could not be deducted and was part of the turnover. The applicant is not raising any dispute in this regard. So far as the distribution charges are concerned, the Tribunal held that it was not a freight because the fr....