Case: State of Karnataka and Another Vs. Bangalore Soft Drinks Private Limited

2. The facts in brief are :The petitioner is a manufacturer of aerated drinks popularly called asand Fanta having its factory at Mysore road, Bangalore. For the assessment yearin relation to the period from April 1, 1977 to March 31, 1978, the revision petitioner claimed exclusion of freight charges and octroi duty in computing the taxable turnover, on the ground that the freight charges had been independently charged and the octroi had been paid by him for and on behalf of the wholesaler and not as a seller of the goods. This contention of the revision petitioner did not find favour with the assessing authority, the appellate authority as well as the Tribunal and they rejected the exclusion claimed by the revision petitioner. Hence, this petition.

Reasoning:
10. In view of our finding that transport of the goods from the factory to the place of the buyer was done or undertaken by the revision petitioner in his capacity as a transporter or a carrier agent of the buyer and the said transportation having been made for and on behalf of the buyer, it has to be construed that the octroi charges were collected and paid by him in his capacity as a transport agent of the wholesaler, on whose behalf the goods were transported. Therefore, the octroi charges collected and paid by the revision petitioner cannot also be included in the sales turnover of the revision petitioner for computing the tax. They were subsequent to the sale and were paid by the revision petitioner at the octroi gate in his capacity as a carrier of the goods.11. Therefore, for the foregoing reasons, we hold that the freight charges and the octroi charges cannot be included in the sales tax turnover of the assessee for the purpose of computing the sales tax. In this view of the matter, the judgment passed by the Tribunal as well as the appellate and the assessing authority are liable to be set aside and the revision petition filed by the petitioner is liable to be allowed.