Taxable turnover excludes government liabilities collected as a conduit, where the sums do not form part of the sale price.

Amounts collected by a dealer merely as a collecting agent for the Government, and not as part of the sale price, do not form part of taxable turnover under the Kerala General Sales Tax Act, 1963. The administrative surcharge and price equalisation charge were liabilities of the retailers to the Government, were separately collected on the Government's behalf, and never became part of the goods' price. On that basis, their inclusion in the appellant's taxable turnover was unjustified and was set aside.

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Issues: Whether the administrative surcharge and price equalisation charge collected from retailers could be included in the appellant's taxable turnover under the Kerala General Sales Tax Act, 1963.

Analysis: The amounts in question were liabilities of the retailers to the Government, and the appellant collected them only on behalf of the Government. The appellant acted merely as a collecting agent or conduit, and the sums so collected never formed part of the price of the goods. Since the price was separately fixed under the agreement, the collections could not be treated as turnover liable to sales tax.

Conclusion: The inclusion of the administrative surcharge and price equalisation charge in the appellant's taxable turnover was unjustified and is set aside.

Ratio Decidendi: Amounts collected by a dealer merely as a collecting agent for the Government, and not forming part of the sale price, cannot be included in taxable turnover.

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