Composite tax computation for outstill liquor dealers prevails over separate purchase tax on ancillary mohua flower turnover.

Rule 90-B prescribed a special composite method of computing tax for dealers in outstill liquor, tari and pachwai, and it applied to the dealer's taxable turnover as a whole rather than only to sale turnover. The purchase of mohua flower was incidental and ancillary to the business of manufacturing and selling outstill liquor, so that purchase turnover was part of the same composite activity. In the presence of this special computation mechanism, separate purchase tax under section 5(2) was not payable on the mohua flower purchase turnover in addition to the compounding tax under rule 90-B.

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Issues: Whether purchase tax on mohua flower purchase turnover was payable in addition to the compounding tax under rule 90-B for sale of outstill liquor.

Analysis: Rule 90-B provided a special mode of computation of tax for dealers carrying on business in outstill liquor, tari and pachwai. The rule applied to the dealer's taxable turnover as a whole and did not confine its operation only to the sale turnover of outstill liquor. The purchase of mohua flower was incidental to and ancillary to the business of manufacturing and selling outstill liquor. In the presence of this special computation mechanism, the taxable turnover was to be determined under rule 90-B rather than by separately applying section 5(2) to the purchase turnover.

Conclusion: The dealer was not liable to pay purchase tax on the turnover of purchase of mohua flower in addition to the compounding tax payable under rule 90-B.

Ratio Decidendi: Where a special statutory rule prescribes a composite mode of computing tax for a class of dealers, that special computation prevails over separate taxation of an ancillary purchase turnover forming part of the same business activity.

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