Turnover includes excise duty and freight recovered from buyers unless the statute or rules expressly allow a deduction.

Excise duty recovered from purchasers was treated as part of taxable turnover because turnover comprises the aggregate sale consideration, and the statutory scheme allows only deductions expressly prescribed by the Rules. The deletion of the earlier deduction for excise duty was upheld as a valid withdrawal of exemption, not a fresh levy. Freight charges separately shown in invoices were also held not deductible, as pre-sale freight formed part of the price paid for the goods and separate billing did not change its character. The assessment was sustained, with both claimed deductions rejected.

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Issues: (i) Whether excise duty recovered by the dealer from purchasers formed part of the taxable turnover and whether the deletion of the deduction for excise duty under the Rules was ultra vires. (ii) Whether freight charges separately shown in the invoices were deductible from taxable turnover.

Issue (i): Whether excise duty recovered by the dealer from purchasers formed part of the taxable turnover and whether the deletion of the deduction for excise duty under the Rules was ultra vires.

Analysis: Under the Act, tax is levied on the dealer's taxable turnover, and turnover means the aggregate amount for which goods are sold. The statutory scheme permits only such deductions as are prescribed under the Rules. Section 6 merely declares that liability under the Act is in addition to liability under other laws and does not create any exclusion from turnover for amounts representing other taxes. The omission of the earlier deduction for excise duty under Rule 9 did not create a new levy but only withdrew an exemption that had previously been granted. Since the dealer had passed on the excise duty by including it in the sale price charged to customers, that amount remained part of the consideration for sale.

Conclusion: The excise duty collected from customers was includible in taxable turnover, and the amendment deleting the deduction was valid.

Issue (ii): Whether freight charges separately shown in the invoices were deductible from taxable turnover.

Analysis: Freight and similar pre-sale expenses formed part of the price for which the goods were sold. The statutory definition of turnover covers the aggregate consideration received for the sale, and separate billing of freight did not alter its character. The question was already covered by the binding principles that the full amount paid by the purchaser for the goods is part of turnover unless a specific deduction is allowed by the Rules, and no such deduction was available on the facts.

Conclusion: The freight charges were not deductible from taxable turnover.

Final Conclusion: The assessment was sustained in full, with both claimed deductions rejected and the writ petition dismissed.

Ratio Decidendi: Amounts recovered from purchasers as part of the sale consideration, including taxes or charges passed on by the dealer, form part of turnover unless the statute or valid rules expressly provide a deduction.

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