TaxTMI 
TaxTMI 
2004 (8) TMI 707
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....Tax Tribunal was legally justified in holding that inward freight is not the part of taxable turnover?" 2. Dealer/opposite party (hereinafter referred to as "dealer") was carrying on the business of Coal and was registered under the U.P. Trade Tax Act as well as under the Central Sales Tax Act. In the year under consideration, applicant had imported coal against its Form 31 and supplied Coal to various parties alleged mainly to Brick Kiln owner. Dealer paid freight charges and also incurred other expenses on the goods till the arrival of the goods at its destination, but the said freight was charged in the bill separately from its customers. It is alleged that the dealer was holding license from District Supply Officer and the coals were s....
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.... He submitted that the dealer was registered under the U.P. Trade Tax Act as well as under the Central Sales Tax Act and purchased coal from coalery in its own account and imported such coal inside the State of U.P. at its destination against its own Form 31 and sold the coal for price to the various parties. He submitted that the manner of preparing the bill is wholly irrelevant and in substance, dealer had sold the coal on principal-to-principal basis to the various customers and there was no agreement of any agency between the dealer and purchaser. He further submitted that merely because, dealer was B-licensee under the Coal Control Orders issued by the District Supply Officer, it can not be said that the dealer acted as an Agent on beh....
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....e amount for which goods are supplied or distributed by way of sale or are sold, by a dealer, either directly or through another, on his account or on account of others, whether for cash or deferred payment or other valuable consideration: Explanation I (Omitted) Explanation-II. Subject to such conditions and restrictions, if any, as may be prescribed in this behalf, - (i) the amount for which goods are sold or purchased shall include the price of the packing material in which they are packed and any sums charged for anything done by the dealer in respect of the goods sold, at the time of or before the delivery thereof, other than cost of freight or delivery or cost of installation or the amount realized as trade tax on sale or purch....
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....make dealer as purchasing agent on behalf of purchaser. Issue of B-license under the Coal Control Orders, only authorizes dealer to act as a coal agent, but whether dealer in respect of transaction in dispute acted as a coal agent of buyers or not, is a question has to be decided on the basis of nature of transaction. In the present case, record does not show any material that there was any contract of agency between the purchaser and seller and inasmuch as, dealer purchased coal in its own account, imported such coal against its own Form 31 and sold it to the purchaser and passed on the title on the coal to the purchaser by raising invoices and charging price of goods. In, Loon Karan Sohan Lal v. Firm John and Company and Ors., a Divisio....
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....proceeds of the sale. The essence of agency to sell is the delivery of the goods to a person who is to sell them, not as his own property but as the property of the principal who continues to be the owner of the goods and will, therefore, be liable to account for the sale proceeds. 8. In the case of Dyer Meakin Breweries Ltd. v. State of Kerala 26 STC 248 (SC), company was engaged in the manufacturing of liquor at various places in U.P. and Haryana, transported the goods from its breweries and distilleries to its place of business in Ernakulam and sold them there. When selling liquor to the customers the appellant made out separate bills for ex-factory price and for "freight and handling charges". The appellant claimed that the amount char....
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....t the goods and to deliver the same or where the expenditure is incurred as an incident of sale. It is not intended to exclude from the taxable turnover any component of the price, expenditure incurred by the dealer which he lad to incur before sale and to make the goods available to the intending customer at the place of sale." 9. The aforesaid decision has been followed by the Apex Court in the case of D.C. Johar & Sons (P) Ltd. v. Sales Tax Officer, Ernakular and Anr. reported in 26 STC 120. 10. Both the aforesaid decisions have been relied upon in the case of TVL Ramco Cement Distribution Co. Pvt. Ltd., Tamil Nadu v. State of Tamil Nadu. 11. In the present case, dealer failed to prove that it acted as a Purchasing Commission Agent, i....