Taxable turnover includes inseparable sale-related charges where painting work formed part of the same commercial transaction.

Charges collected by a seller for work that is integral and inseparable from the sale transaction form part of taxable turnover where the statutory definition of turnover is wide enough to include all sums charged in connection with the sale. The painting of auto-rickshaws was undertaken by the assessee itself and was required before the vehicles could be put on the road; although the charges were shown separately in the bills, they were treated as part of the same commercial transaction as the sale. The painting charges were therefore includible in turnover and not exempt, and the Tribunal's exemption to that extent was set aside.

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Issues: Whether the charges collected for painting auto-rickshaws sold by the assessee formed part of the taxable turnover under the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The painting of the auto-rickshaws was undertaken by the assessee itself and was required before the vehicles could be put on the road. Though the charges were shown separately in bills, the painting activity was treated as part of the same commercial transaction as the sale of the auto-rickshaws. The statutory definition of turnover was wide enough to include all sums charged by the seller in connection with the sale.

Conclusion: The painting charges were includible in turnover and were not exempt.

Final Conclusion: The orders of the Tribunal were set aside to the extent they granted exemption on the painting charges, and the revision cases succeeded in part in favour of the Revenue.

Ratio Decidendi: Amounts charged by a seller for work that is an integral and inseparable part of the sale transaction form part of the taxable turnover where the statutory definition of turnover is wide enough to cover such sums.

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