TaxTMI 
TaxTMI 
2020 (3) TMI 698
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....rges on the ready mix cement concrete sold by the assessee, as to whether freight charges billed separately can be included in the taxable turn over or not? 3. The learned tribunal had decided indeed the issue in favour of assessee with the following observations; " In this case law by interpreting the definition of sale price as found in Section 2(h) of the Central Sales Tax Act, 1956 their Lordships of the Honourable High Court of Madras, have held that the cost of freight or delivery should be excluded from the sale price wherever they are separately charged. 12) We have another case law in (2000) - 117 STC 413 (SC) in State of Karnataka and Another Vs. Bangalore Soft Drinks Pvt., Ltd., which arose out of the provisions of Karnataka....
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....629 (Madras) alone are applicable to the facts of our case. If the ratio held in these two case laws is applied to the facts of our case wherein the dealer had separately shown and charged delivery and pumping charges and the purchase order would indicate sale would be completed on delivery at Ex-Ready Mix Cement Concrete Works and that the dealer had to perform the role of a transporter in transporting the commodity to the construction site of the buyer and in the light of the certificate issued by the Chartered Accountant of the dealer to the effect that the receipt of freight and delivery charges were not reflected under the head sales and services, but shown under other income in the annual audited accounts for the year ended 31.3.2003 ....
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....nsportation, in this case was undertaken on behalf of the buyer." 11. Thus, the law laid down in the above decision is that cost of freight or delivery or cost of transportation cannot be included in the sale price, where they are separately charged. In the instant case, as a matter of fact, the first Appellate Authority found that the freight charges, pumping charges have been separately shown in the invoices without including the same in the cost of the goods. Further, the purchase order also clearly says that the delivery is ex-RMC works. Further, the Assessing Officer has not pointed out even a single instance of collection of consolidated amount and that the sale is completed only after delivery of RMC at the site of the customer and....
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....the consignees address was mentioned as Larsen & Toubro Limited. C/o.site office at Ennore Thermal Power Station, Ennore. A perusal of the contract between the dealer and the TNEB and the invoices raised by the foreign supplier and the invoices raised by the dealer in favour of the ultimate buyer would show that these goods were imported by the dealer only pursuant to the contract they entered into with the TNEB for supply of the same to the Ennore Thermal power Station. Hence, through documents, the genuineness of which has never been in dispute, the dealer had succinctly established that the goods sold by the dealer to the TNEB was imported form the USA and such import was occasioned by contract entered into between the dealer and the TNE....
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....l of Supplies. There was no possibility of these goods being diverted by the assessee for any other purpose. Consequently we hold that the sales took place in the course of import of goods within section 5(2) of the Act, and are, therefore, exempt from taxation." In the case in hand, it is to be noted that import had occasioned only on account of the covenant entered into between the company and N.T.P.C. and the imported pipes were used exclusively for erection and commissioning of the plant. The respondents have failed to establish that these pipes were not used in the plant of N.T.P.C." (typed and compared) 9. Regarding second issue, it is also covered in favour of the assessee, because the sales in course of import taken place in the ....
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....r one pretext or other and the same did not find favour with the assessing authority resulting in balance of tax. Now, that the first appellate authority and also this Tribunal have granted exemption over the turnover representing sale in the course of import and on the freight charges. The contention of the Learned State Representative that after the amendment made to 12(3)(b) with effect from 28.5.1993 it is immaterial whether all the transactions were available in the books of accounts or in the returns submitted and it would suffice if there remained balance of tax due between the tax assessed and tax paid as per return. We cannot accept this contention, because of the declaration of the Honourable High Court of Madras in 125 STC 505 ....