Sales tax collected separately on coal sales forms part of turnover when added to the sale price received.

Sales tax separately charged on coal sales formed part of turnover under the M.P. General Sales Tax Act, 1958, because "turnover" and "sale price" cover the whole consideration realised for the goods. The Colliery Control Order fixed a controlled coal price but stated that the quoted price was exclusive of State sales tax and Central sales tax, so tax could be added to the controlled price and was not excluded from the amount actually received. Paragraph 12B did not shift tax liability to the purchaser. Where a dealer passes on its tax burden by collecting it from the buyer, the amount collected is included in sale price and taxable turnover unless law provides otherwise.

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Issues: Whether sales tax separately charged on the sale of coal formed part of the dealer's turnover and was includible in taxable turnover under the M.P. General Sales Tax Act, 1958.

Analysis: The expression "turnover" under section 2(t) and "sale price" under section 2(o) cover the whole consideration received for the sale of goods. The Colliery Control Order fixed the coal price in the notification but expressly stated that the quoted price was exclusive of taxes leviable under State sales tax law or the Central Sales Tax Act. That formulation permitted addition of sales tax to the controlled price and did not exclude such tax from the price actually realised. Paragraph 12B of the Order did not impose liability on the purchaser to pay tax to the seller. The governing principle is that where a dealer passes on its tax burden by adding tax to the price received from the buyer, the amount so collected forms part of the sale price and hence part of turnover, unless some law expressly authorises a different treatment.

Conclusion: The amount of sales tax charged separately on the sale of coal formed part of the turnover liable to tax under the M.P. General Sales Tax Act, 1958.

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