Sales tax collected from buyers forms part of sale price and taxable turnover under broad statutory definitions.

Amounts a dealer collects from purchasers as sales tax are includible in the sale price and therefore form part of taxable turnover where the statutory definitions of turnover and sale price are broad enough to cover all sums received in respect of the sale. The dealer's ability to shift the tax burden to the purchaser does not change the statutory character of the receipt for assessment purposes. A governmental publication could not override the Act, and no provision made the dealer the Government's agent for collection. The amount collected as sales tax was held to fall within taxable turnover, and the question was answered in the affirmative against the petitioner.

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Issues: Whether the amount realised by a dealer from purchasers as "sales tax" is includible in the "sale price" and therefore forms part of the dealer's taxable turnover under the sales tax law.

Analysis: The relevant provisions made the dealer, and not the purchaser, liable to pay tax to the State. The definitions of "turnover" and "sale price" were held to be wide enough to include every amount received by the dealer in respect of the sale, including sums separately collected as sales tax. The contention that the dealer could shift the burden to the purchaser did not alter the statutory character of the receipt for purposes of assessment. The argument based on governmental publication was rejected because it could not control the Act and there was no statutory provision creating the dealer as the Government's agent for collection. The construction adopted was also consistent with the view taken on an identical definition in the Bengal sales tax law.

Conclusion: The amount collected from purchasers as sales tax forms part of the sale price and must be included in taxable turnover; the question was answered in the affirmative against the petitioner.

Ratio Decidendi: Amounts realised by a dealer from purchasers in respect of sales tax are part of the consideration received on the sale and, where the statute defines sale price and turnover broadly, such amounts are includible in taxable turnover notwithstanding any private shifting of the tax burden.

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