Charges related to freight, insurance, depot maintenance, and sale promotion should be included in the turnover if the price is fixed FOR destination, as per the Vanaspati Price Control Order and relevant case law.

( 1 ) THE present revision under Section 11 of U. P. Sales Tax Act (hereinafter referred to as Act) is directed against the order of Tribunal dated 12. 1. 1994 relating to the assessment years 1984-85. The following question has been raised: "whether on the facts and in the circumstances of the case the Tribunal was legally justified in including the distribution charges in the taxable turnover of the applicant?"

( 2 ) APPLICANT was engaged in the business of Vanaspati Ghee, Washing Soap etc. During the year under consideration, applicant had charged a sum of Rs. 1,45,69,532. 85 Paise towards the distribution charges in the bill on the sale of Vanaspati Ghee within the State of U. P. from the customers. Claim of the applicant was that the distribution charges were towards freight, insurance charges, forwarding, maintenance of Depot and sale promotion etc. and claimed that the amount being charged separately, it would not be part of the turnover. Assessing Authority had not accepted the plea of the applicant and treated distribution charges as a part of the turnover. First Appellate Authority confirmed the order of Assessing Authority and the Tribunal has rejected the second appeal.

( 3 ) HEARD Counsel for the parties.

( 4 ) LEARNED Counsel for the applicant submitted that in the assessment year 1982-83 in Sales Tax revision No. 1967 of 1993 Modi Industries Ltd. , Ghaziabad v. Commissioner of Sales Tax, u. P. reported in 1998 U. P. T. C. page 1069. this Court held that freight charges on account of loading and unloading should be excluded from the total turnover if such amount has been charged by a separate billing and other charges claimed on account of insurance or maintenance of depot or forwarding charges shall be included while computing the total turnover. He submitted that for the assessment year 1983-84, this Court has remanded back the matter to the tribunal to decide the appeal afresh. The judgment is reported in 2000 UPTC page 149 Modi industries v. CST. He submitted that freight charges are not the part of the turnover.

( 5 ) LEARNED Standing Counsel submitted that the order of this Court in the assessment year 1982-83 and 1983-84 are not relevant for this year. He submitted that under the Vanaspati Price control Order, dealer had charged price FOR destination. He submitted that in the bill in 16. 5 kg. of Tin Rs. 4/-, 4 Kg. Tin Rs. 2/- and 2 Kg. Tin Re. 1/- was charged towards the distribution charges on which, trade tax @ 10. 5% was also charged. He submitted that the First Appellate authority had recorded further finding that apart from the distribution charges, freight was separately charged and the distribution charge was not relating to the freight. In any view of the matter, it is not disputed that under the Vanaspati Price Control Order sale price fixed was FOR destination and therefore, distribution charges were part of the turnover and therefore, for this year, there is no need to remand back the matter to the Tribunal.

( 6 ) I have perused the order of Tribunal and the authorities below. First Appellate Authority and the Tribunal both found that the distribution charges were charged under the Vanaspati Price control Order and under the Vanaspati Price Control Order price fixed was FOR destination. In the revision petition, it has not been disputed that the price of Vanaspati was fixed under the vanaspati Price Control Order and it was FOR destination. It has also not been disputed that in the bill one consolidated amount namely Rs. 4/- on 16. 5 Kg. Tin, Rs. 2/- on 4 Kg. Tin and Re. 1/-Tin of 2 Kg. was charged towards the distribution charges. There is nothing to show that the distribution charges related to freight or cost of the delivery. First Appellate Authority recorded the finding that apart from the distribution charges, freight was separately charged and on the amount of distribution charges, trade tax was charged. Finding of First Appellate Authority which are not disputed are as fo