V. RAMASWAMI, J. :

The respondent-assessees are manufactures of cement. For the asst. yr. 1969-70, they reported a total and taxable turnover of Rs. 1, 56, 72, 484.29 and Rs. 1, 33, 32, 751.23. The only point in dispute in this tax revision case related to a sum of Rs. 14, 04, 131.29 which represented the freight charges. On the ground that they have separately specified and charged freight in their invoices, they claimed deduction of this turnover from the taxable turnover. The AO and the AAC rejected this claim holding that the disputed turnover formed part of the price realised for the cement sold and that, therefore, it is includable in the taxable turnover. But, on a further appeal, the Tribunal purporting to follow the decision of the Supreme Court in Hyderabad Asbestos Cement Products Ltd. vs. State of Andhra Pradesh allowed the appeal and held that the disputed turnover could not be included in the taxable turnover.

2. The supply and distribution of cement is regulated by the Cement Control Order, 1967 promulgated by the Central Government in exercise of their power under the Industries Development and Regulation Act, 1951. Under cl. 7 r/w the First schedule to th