Sales tax deduction from turnover cannot be denied merely because it was not separately shown in bills.

Rule 7(1)(k) of the General Sales Tax Rules, 1950 permits deduction of sales tax collected by a dealer from gross turnover without requiring that the tax be shown separately in customer bills. Where the rule itself does not impose a separate-item billing condition, the deduction cannot be refused merely because the collection was not separately stated. The contrast with another rule containing an express separate-item requirement confirms that such a condition applies only when specifically provided. On that reasoning, the assessee was entitled to the deduction.

---

---

Issues: Whether sales tax collected by a dealer could be deducted from gross turnover under rule 7(1)(k) of the General Sales Tax Rules, 1950 when it was not shown separately in the bills issued to customers.

Analysis: Rule 7(1)(k) allowed deduction of all amounts of sales tax collected by the dealer in computing net turnover and did not impose any condition that such tax must be shown separately in the bill. The presence of an express separate-item requirement in another provision of the rules showed that, where such a requirement was intended, it was specifically stated. In the absence of such a stipulation in rule 7(1)(k), the deduction could not be denied merely because the tax was not separately shown in the bills.

Conclusion: The assessee was entitled to the deduction, and the department's challenge failed.

Ratio Decidendi: Where a turnover-deduction provision does not prescribe a separate billing condition, the deduction cannot be refused on the ground that the amount collected was not separately shown in the bill.

---