Court includes sale prices of various items in turnover, rejects exemption claim, orders further inquiry.

The court ruled in favor of including the sale prices of motor lorries, building material, tools, application forms, and goods sold at the branch shop in the turnover. The exemption claim was rejected as these items were deemed essential for the registered business. Additionally, the extra three per cent charged due to Textile Control Orders was also included in the turnover. However, two items in the turnover required further investigation, leading to a remand for additional inquiry by the Commissioner.

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Issues:
1. Exemption claim for the sale prices of motor lorries in the turnover.
2. Inclusion of sale prices of building material and tools in the turnover.
3. Inclusion of sale price of application forms in the turnover.
4. Sale prices of goods sold at the Amravati branch shop.
5. Inclusion of an extra three per cent in the turnover due to Textile Control Orders.
6. Lack of clarity on items of Rs. 95 and Rs. 1,268-14-6 in the turnover.

Analysis:

1. The first issue pertains to the exemption claim for the sale prices of motor lorries in the turnover. The judgment refers to previous cases to establish the principle that exemption cannot be claimed if the goods sold are related to any business for which the assessee is registered. In this case, the vehicles were used for transporting goods manufactured by the assessee, making them part of the equipment required for the registered business. Therefore, the sale prices of motor lorries were rightly included in the turnover.

2. The next issue involves the inclusion of sale prices of certain building material and tools in the turnover. The judgment states that similar considerations apply to these items, indicating that they were also part of the business operations for which the assessee was registered. Hence, their inclusion in the turnover is deemed appropriate.

3. The third issue concerns the sale price of application forms included in the turnover. The judgment clarifies that application forms are considered goods under the relevant Act and were sold in connection with the assessee's business. As no convincing reason was provided to challenge their inclusion, the claim for exemption was rejected.

4. Moving on to the sale prices of goods sold at the Amravati branch shop, the judgment explains that since the branch shop is part of the assessee's concern, the sale prices of goods sold there cannot be excluded from the turnover. This decision reinforces the connection between the branch shop and the overall business activities of the assessee.

5. The issue of the extra three per cent charged due to Textile Control Orders is also addressed. The judgment highlights that despite the subsequent passing on of this amount to normal customers, it is considered part of the sale price and must be included in the turnover. The analogy drawn with other charges establishes the legal basis for rejecting the claim to exclude the extra three per cent.

6. Lastly, the judgment notes a lack of clarity regarding two items in the turnover, one of Rs. 95 and the other of Rs. 1,268-14-6. Further inquiry is deemed necessary to determine the nature of these items and the claims made by the assessee. As a result, the case is remanded to the Commissioner for additional investigation and a fresh decision on these specific items.

In conclusion, the application fails concerning all items except the two mentioned in the last paragraph, which require further inquiry and a fresh decision by the Commissioner.

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