Turnover tax deduction from assessable value fails where the claimed amount was neither paid nor payable.

Deduction of turnover tax from assessable value under Section 4(4)(d)(ii) is confined to taxes actually payable on the goods and must reflect genuine tax incidence. Where the assessee admits that a substantial part of the claimed turnover tax was neither paid nor shown as payable for the relevant period, that amount cannot be deducted. Earlier decisions on average or equalised tax treatment were distinguished because they concerned taxes actually paid or genuinely established as payable. The disputed turnover tax was therefore not deductible from assessable value, and the Revenue's challenge succeeded.

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Issues: Whether turnover tax claimed as deduction from assessable value could be allowed when a part of the claimed amount had admittedly neither been paid nor shown as payable to the taxing authority.

Analysis: Deduction under Section 4(4)(d)(ii) is confined to taxes payable on the goods. The expression relied upon by the assessee in earlier decisions on average or equalised tax treatment does not dispense with the requirement that the deduction must represent genuine tax incidence. Where the assessee admits that a substantial portion of the claimed turnover tax was neither paid nor payable for the relevant period, that amount cannot be treated as deductible. The principle allowing deduction of taxes paid periodically or on a provisional basis does not support a claim for an amount that is not shown to be payable to the authority. The authorities cited by the assessee were distinguished as they contemplated taxes actually proved to have been paid or genuinely equalised.

Conclusion: The disputed turnover tax amount was not deductible from assessable value and the Revenue's challenge succeeds.

Final Conclusion: The order dropping the demand was set aside, and the Revenue was granted relief.

Ratio Decidendi: Only taxes actually payable and shown to be genuine can be deducted from assessable value; an amount admittedly neither paid nor payable for the relevant period is not deductible.

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