Separate collection of sales tax is required for turnover deduction under the Bihar Sales Tax Act, 1959.

Deduction from gross turnover under the Bihar Sales Tax Act, 1959 is available only where sales tax is actually and separately collected from the purchaser in addition to the sale price. Separate mention in cash memos or bills is not indispensable, because collection may be proved by other evidence; however, the ative fact remains whether such tax was in fact collected as tax. On the finding that the dealer had not separately collected special sales tax from customers, the claimed amounts were not deductible in computing taxable turnover, and the rejection of the deduction claim was upheld.

---

---

Issues: Whether amounts claimed by the dealer as sales tax, though not separately shown in the cash memos or bills, were deductible from gross turnover while computing taxable turnover under the Bihar Sales Tax Act, 1959.

Analysis: Deduction under section 7 of the Bihar Sales Tax Act, 1959 is available only for sales tax actually collected as such from the purchaser in addition to the sale price. The dealer may establish such collection by evidence other than the cash memo entries, but the decisive question is whether the tax was in fact separately collected. On the finding recorded, the dealer had not separately collected special sales tax from the customers, and therefore the amounts claimed could not be deducted from gross turnover.

Conclusion: The rejection of the dealer's claim for deduction of the two amounts was valid, and the question referred was answered in the affirmative against the dealer.

Ratio Decidendi: For purposes of deduction from gross turnover, sales tax must be shown to have been actually and separately collected as such from the purchaser; if no such separate collection is proved, the amount is not deductible in computing taxable turnover.

---