Freight charges form part of sale price hence taxable under Sales Tax Act

Sterlite Industries (India) Limited Vs State of Tamil Nadu (Madras High Court) Madras High Court held that freight charges are directly related to the delivery of goods and therefore form an inseparable part of the sale consideration. Thus, freight charges form part of the sale price and are taxable under the Sales Tax Act. Facts- The petitioner manufactures sulfuric acid. During the inspection, the officials found that the petitioner had charged freight separately in certain bills. The petitioner explained that they collected freight charges from the customers and paid the same to the transpo...