Purchase turnover includes harvesting and transport charges when they are part of the price paid for sugarcane purchases.

Amounts paid by a sugar manufacturer to growers towards harvesting and transportation charges were held to form part of the purchase turnover under the Mysore Sales Tax Act, 1957. Although the Government had fixed the minimum price of sugarcane, the parties later varied the arrangement and paid an additional amount linked directly to the quantity supplied. The court treated those payments as part of the price realised for the cane, not as mere ex gratia amounts. Since turnover under section 2(v) means the aggregate amount for which goods are bought, the additional charges were taxable as part of the purchase turnover.

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Issues: Whether the amounts paid by the assessee to sugarcane growers towards harvesting and transportation charges formed part of the purchase turnover liable to tax under the Mysore Sales Tax Act, 1957.

Analysis: The minimum price of sugarcane was fixed by Government, but the agreement between the assessee and the growers was subsequently varied by an arrangement under which an additional amount of four paise per quintal was paid. The additional payments were directly linked to the quantity of cane supplied and were reflected in the bills as part of the price realised for the cane. On the facts, the payments were not mere ex gratia amounts; they represented an enhancement of the consideration for the sugarcane purchased. Since turnover under section 2(v) means the aggregate amount for which goods are bought, the additional harvesting and transportation charges fell within the taxable purchase turnover.

Conclusion: The amounts paid towards harvesting and transportation charges formed part of the purchase turnover and were liable to tax. The revision petitions failed.

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