Sale-linked collections form part of taxable turnover when they are in substance consideration for goods despite separate invoice description.

Amounts collected from purchasers at the time of sale form part of turnover and taxable turnover where they are, in substance, part of the consideration for the goods, even if shown separately in the invoice or described as a charitable or religious contribution. The statutory scheme permits only those deductions expressly authorised by the Act and Rules, and a collection not statutorily permitted cannot be excluded merely by its label. On the facts stated, the mahimai amount was added to the invoice value and taken as part of the sale transaction, so it was includible in taxable turnover.

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Issues: Whether the mahimai amount collected by the assessee from purchasers, shown separately in the sale invoices, formed part of the turnover and taxable turnover.

Analysis: The statutory definition of turnover covers the aggregate amount for which goods are bought or sold, and taxable turnover is the turnover after only such deductions as are permitted by the Act and the Rules. Amounts collected on the occasion of sale, even if separately described in the invoice and even if claimed to be for a charitable or religious object, form part of the consideration if they are in substance paid for obtaining the goods. Earlier decisions on rusum, dharmada, sales tax collected under statutory obligation, and similar levies did not assist the assessee on the facts found here. The collection was not one which the seller was statutorily authorized to collect, and it was added to the invoice value and taken from purchasers as part of the sale transaction.

Conclusion: The mahimai collection formed part of the sale consideration and was includible in the taxable turnover.

Ratio Decidendi: Amounts collected from purchasers on the occasion of sale, and forming part of the consideration for the goods, are includible in turnover and taxable turnover unless the statute expressly permits their deduction.

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