M/S. INDIA METERS LTD. vs STATE OF TAMIL NADU

The Supreme Court addressed the inclusion of freight and insurance charges in the taxable turnover under the Tamil Nadu General Sales Tax Act, 1959 and the Central Sales Tax Act, 1956. The Court held that such charges form part of the sale price, thus affirming the decision of the Tamil Nadu Taxation Special Tribunal which remanded the matter for recalculation of actual freight charges. The judgment clarified the contractual obligations regarding payment and transfer of title, emphasizing that sales tax is applicable on the total consideration including freight charges.