Excise Duty Deduction under Central Sales Tax Turnover rejected; State-law deductions cannot be imported through section 9(3).

Turnover under the Central Sales Tax Act, 1956 is the aggregate of sale prices under section 2(h), and the Act's rules do not allow deduction of excise duty from turnover. Section 9(3) was read as confined to assessment, collection and enforcement machinery, so the words "in the same manner" imported procedure only and did not carry into the Central Act any substantive deductions available under State sales tax law. The note accepts the view of the Madras and Kerala High Courts and treats contrary authorities on different issues as inapposite; on that basis, excise duty was not deductible and State-law deductions could not be claimed through section 9(3).

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Issues: Whether excise duty paid on goods sold could be deducted while determining turnover under the Central Sales Tax Act, 1956, and whether section 9(3) permitted the assessee to import deductions available under the State sales tax law.

Analysis: Turnover under section 2(j) of the Central Sales Tax Act, 1956 is the aggregate of sale prices as defined in section 2(h), and the rules made under that Act do not provide for deduction of excise duty. Section 9(3) is confined to the machinery of assessment, collection and enforcement, and the phrase "in the same manner" refers to procedure only. It does not carry into the Central Act the substantive deductions available under the State law. The view taken by the Madras and Kerala High Courts was accepted, and the contrary reliance placed on decisions dealing with different questions was held to be inapposite.

Conclusion: Excise duty paid was not deductible in computing turnover under the Central Sales Tax Act, 1956, and the assessee could not claim State-law deductions by invoking section 9(3). The issue was decided in favour of the Revenue.

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