Textile committee cess is not part of sales turnover when collected as a separate statutory impost at sale.

Textile committee cess collected by a seller under the Textiles Committee Act was treated as a separate statutory impost, not as part of the sale price or sales turnover under the Tamil Nadu General Sales Tax Act. The fact that the cess and sales tax were collected at the point of sale did not alter its character, because amounts collected only as a statutory obligation for remittance under another enactment do not become sale proceeds. Accordingly, the cess was excluded from taxable turnover and could not be brought to tax under the sales tax law.

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Issues: Whether the textile committee cess collected by the assessee at the time of sale formed part of the sales turnover liable to tax under the Tamil Nadu General Sales Tax Act.

Analysis: The cess was collected under section 5A(1) of the Textiles Committee Act and was a separate statutory impost distinct from sales tax. The fact that both levies were collected at the point of sale did not make the cess part of the sale price or sales turnover. Amounts collected by a seller as a statutory obligation for remittance under another enactment, and collected only as an accredited instrumentality for recovery, do not assume the character of sale proceeds.

Conclusion: The textile committee cess did not form part of the sales turnover and could not be brought to tax under the Tamil Nadu General Sales Tax Act. The revision by the State failed.

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