Freight reimbursement not form part of sale price for sales tax: Bombay HC

Commissioner of Sales Tax Vs Parle Products Ltd (Bombay High Court) Bombay High Court in Commissioner of Sales Tax vs. Parle Products Ltd. addressed the issue of whether freight charges incurred by a manufacturer for transporting goods from the factory to the purchaser’s premises can be included in the “sale price” for the purposes of sales tax under Section 2(29) of the Bombay Sales Tax Act, 1959. The case arose from Sales Tax Reference No. 79 of 2009, treated as the lead reference, where the Maharashtra Sales Tax Tribunal referred questions regarding the inclusion of freight charges i...