CEMENT MARKETING CO. OF INDIA LTD. vs ASSTT. COMMISSIONER OF SALES-TAX, INDORE & ORS.

The Supreme Court held that the amount of freight is included in the 'sale price' as defined under Section 2(o) of the Madhya Pradesh General Sales Tax Act, 1958, and Section 2(h) of the Central Sales Tax Act, 1956, thereby affirming its inclusion in the taxable turnover of the assessee. The Court referenced Hindustan Sugar Mills v. State of Rajasthan, establishing that the provisions of the Cement Control Order necessitate this inclusion. However, the Court ruled that the imposition of penalty under Section 43 of the Madhya Pradesh General Sales Tax Act, 1958, and Section 9(2) of the Central Sales Tax Act, 1956, was unjustified as the assessee did not file 'false' returns by omitting the freight amount.