Turnover includes brick sale price through a contractor when the arrangement is a sale on deferred payment basis.

Bricks manufactured and sold through a contractor were treated as part of the assessee's turnover because the contractor acted under authority to manufacture and sell under permits issued by the society. The amount payable was characterised as the sale price of the bricks and as a sale through another on deferred payment basis within the statutory definition of turnover. The deduction allowed to the contractor for manufacturing expenditure was not excluded from turnover, and the amount was not treated as compensation for misappropriation. The result was that the amount formed turnover and was liable to sales tax.

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Issues: Whether the price of bricks manufactured and sold through the contractor was sale price forming part of the assessee's turnover, and whether the amount deducted towards the contractor's expenditure could be excluded from turnover.

Analysis: The assessee had authorised the contractor to manufacture and sell bricks under permits issued by the society. The amount payable by the contractor was held to be the price of the bricks sold, and the transaction was treated as a sale through another on deferred payment basis within the statutory definition of turnover. The amount was not compensation for misappropriation, and the deduction allowed to the contractor for manufacturing was not deductible from the assessee's turnover.

Conclusion: The amount represented turnover and was liable to sales tax. The question was answered in the affirmative, against the assessee and in favour of the revenue.

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