R. 6(c)(i) of the Tamil Nadu General Sales Tax Rules, 1969, applies only to selling dealers and not to purchasing dealers.

V. RAMASWAMI, J.

The assessee, a society registered under the co-operative Societies Act, returned a total and taxable turnover of Rs. 2, 67, 10, 900.88 and Rs. 88, 91, 692.72 respectively for the asst. yr. 1968-69. They claimed exemption in respect of five items. (i) A turnover of Rs. 5, 10, 872.26 relating to the alleged incentive payment made to the cane growers included as part of the purchase price; (ii) A turnover of Rs. 92, 729.14 relating to transport charges paid to the growers included in the purchase turnover of the cane; (iii) turnover relating to sale of press-mud Rs. 7, 315.80; (iv) A turnover of Rs. 16.84 relating to sale of bagassee; (v) turnover of Rs. 4, 17, 422.45 relating to sugar cane standard mixture. The AO disallowed the claim of exemption in respect of all the five items. On appeal, the AAC held that only the sum of Rs. 5, 10, 872.26, the alleged payment of incentive bonus and the sum of Rs. 92, 729.14, the transport charges paid by the assessees were liable to be included in the taxable turnover, but allowed the claim of exemption in respect of the other three items. The assessee preferred an appeal to the Tribunal. The State also filed petition for enhancement in so far as the three items allowed by the AAC was concerned. The Tribunal held that the incentive payment made to the cane growers amounting to Rs. 5, 10, 872.26 was part of the price and that, therefore, it was properly included in the taxable turnover. So far as the transport charges were concerned, on the ground that they were separately paid for by the assessees, the Tribunal allowed the exemption claimed. The Tribunal also dismissed the application filed by the revenue for enhancement on the ground that the assessees could not be considered to be carrying on business in respect of those items. The Revenue has filed this tax revision case challenging the finding of the Tribunal regarding the transport charges and the other items in respect of which an enhancement petition was filed so far as items 3, 4 and 5 in respect of which an enhancement petition was filed, there could be no doubt now that the assessees are liable to pay sales tax on those amounts also in view of the decision of the Supreme Court in State of Tamil Nadu vs. Burmah Shell Co. Ltd. and of this Court in D.C.TO. Tiruchy Division vs. North Arcot Dt. Co-operative Sugar Mills Ltd. The order of the Tribunal in regard to those items are, therefore, liable to be set aside.

2. The only item which needs our consideration, is, therefore, the transport charges. Before the actual point is considered, it is necessary to set out some more facts. Various cane growers enter into an agreement for the supply of the cane produced by them to the assessees who are Sugar Mills. The assessees sometimes supply manures and fertilisers on credit and also arrange for inspection of the crop by experts. The cane growers have to deliver the harvested sugar cane at the factory site of the Mills. The price will have to be paid at the statutory prices fixed by the Government of India under the relevant Control Orders. It so happened that the cane growers were agitating for payment of a higher price than the statutory price fixed by the Central Government. At the instance of the State Government, the parties ultimately agreed on a higher price for the sugar cane delivered at the factory site. The difference between the amount paid and the statutory price fixed is the one which constituted Rs. 5, 10, 872.26 which had already been held to form part of the purchases price and include in the taxable turnover and this amount is not in dispute. Subsequent to the price fixation, the cane growers were also pressing for payment of the transport charges from the fields to the factory of the Mills or to take delivery of the cane at the fields without an obligation on the part of the cane growers to supply the same at the factory site. This was also agreed to between the assessees and cane growers. The agre