G.G. Sohani, J.
1. By this reference under Section 44 of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as the Act), the following question of law has been referred to this Court for its opinion :
Whether in the facts and circumstances of the case, the Tribunal was justified in holding that as freight was part of the turnover even though it was not included in the amount shown in C forms, it was liable to tax at the concessional rate of tax as if it was covered under C declaration forms furnished ?
2. The material facts giving rise to this reference briefly are as follows : For the year 1972-73, the assessing authority had included freight charges amounting to Rs. 30,122 as part of the turnover. The assessing authority further held that since freight charges had not been included in C forms, which had been produced, concessional rate of 3 per cent would not be applicable. On appeal, the Appellate Assistant Commissioner upheld the order of assessment passed by the assessing authority in this behalf. On further appeal, the Tribunal held that the freight charges included as a part of turnover would be taxable only at the concessional rate as applicable in the case of transactions to which they relate and in respect of which C forms had been produced. Aggrieved by that order, the department sought a reference and it is at the instance of the department that this reference has been made to this Court.
3. Having heard the learned counsel for the parties, we have come to the conclusion that this reference deserves to be answered in the affirmative and against the department. 'Freight charges' cannot be treated as if they were 'goods' as seems to have been done by the assessing authority and the Appellate Assistant Commissioner. If these charges are included in the turnover, on the facts and in the circumstances of a particular case and if those charges relate to transactions in respect of which C forms had been produced by the assessee and acted upon by the assessing authority, then it follows that freight charges, which are included in the sale price, would be taxable at the concessional rate. The Tribunal was, therefore, right in holding that the assessee should have been given the benefit of concessional rate in that behalf.
4. Reference answered accordingly. Parties shall bear their own costs of this reference.