Turnover includes collection charges where they form part of the purchase consideration for goods before delivery.

Collection charges paid under the agreement were treated as part of the purchase consideration, not as separate payments for distinct transactions. The court noted that the timing of payment and remittance of part of the amount to a government agent did not alter their character as consideration for the purchase of abnus leaves. Under the statutory definition of turnover, the total amount charged as consideration for the purchase of goods, including sums charged for things done in respect of the goods before delivery, was includible. The collection charges were therefore rightly included in turnover.

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Issues: Whether the collection charges paid by the assessees formed part of the purchase price and were includible in their turnover.

Analysis: The agreement showed that the so-called royalty and the collection charges were not separate and independent payments for different transactions, but together constituted the purchase amount or sale amount payable for the abnus leaves. The fact that the amounts were paid at different stages, and that part of the amount was remitted to an agent of the Government, did not alter their character as consideration for the purchase. Under the statutory definition of turnover, the total amount charged as consideration for the purchase of goods, including sums charged for things done in respect of the goods before delivery, falls within turnover.

Conclusion: The collection charges formed part of the purchase price and were rightly included in the assessees' turnover.

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