Statutorily fixed sale price excludes separately recovered Central sales tax from sale price and taxable turnover.

Where the sale price of controlled stock was statutorily fixed, a separately recovered amount described as Central sales tax was not treated as part of the bargain price. The Court held that this amount was a separate impost permitted to be recovered from the purchaser and did not constitute a sum charged for anything done by the dealer in respect of the goods at or before delivery. It therefore did not form part of the sale price or taxable turnover under the taxing statute, and the assessee was entitled to deduct it.

---

---

Issues: Whether Central sales tax recovered by a controlled stock-holder from purchasers formed part of the sale price or taxable turnover under the Orissa Sales Tax Act, 1947.

Analysis: The price chargeable by the controlled stock-holder was statutorily fixed under the Iron and Steel Control Order and the relevant notification. On that footing, the amount collected as Central sales tax was not an additional element of the bargain price but a separate impost permitted to be recovered from the customer. The Court also held that the amount did not answer the description of a sum charged for anything done by the dealer in respect of the goods at or before delivery, because the tax was paid in relation to the purchase transaction and not in relation to the goods themselves.

Conclusion: Central sales tax collected in these circumstances did not form part of the sale price or taxable turnover, and the assessee was entitled to the deduction.

Ratio Decidendi: Where the sale price is statutorily fixed and the dealer is not entitled to charge more, an amount separately recovered as Central sales tax does not become part of the sale price or turnover under the taxing statute.

---