Hyderabad Asbestos Cement Products ... vs State Of Andhra Pradesh on 19 February, 1969
5. We are of the opinion that this contention cannot be accepted. So far as the principle is concerned, there can be little quarrel about it. The test in such cases is, whether particular charges are incurred prior to the sale or subsequent to the sale ? In other words, the enquiry ought to be at what point has the sale taken place. Any expenses incurred by the assessee before the sale must be borne by him and any expenses incurred after the point of sale must be borne by the customer. Of course again there may be cases, as in the case of Hyderabad Asbestos Cement Products Ltd. v. State of Andhra Pradesh , where there is a specific stipulation between the parties that the amount representing freight would not be payable as part of the consideration for the sale of goods, but by way of reimbursement of the freight, which was payable by the purchaser, but in fact disbursed by the dealer.