THE ASSOTD. CEMENT COMPANIES LTD. vs THE COMMERCIAL TAX OFFICER .

The Supreme Court held that the imposition of penalties under Section 7AA of the Rajasthan Sales Tax Act, 1954, for not including freight charges in the taxable turnover in the original returns is unsustainable. The Court quashed the assessment orders that levied penalties and interest under Sections 10, 11B of the State Act and Section 9 of the Central Sales Tax Act, 1956, as the assessee had filed revised returns and paid the due tax after becoming aware of the legal requirement. The judgment clarified that freight charges are part of the sale price and must be included in the taxable turnover.