Taxable turnover excludes statutory market cess collected separately and remitted to the authority, not part of sale price.

Amounts recovered from a purchaser form part of taxable turnover only when they are part of the sale price; where a statute requires the dealer to collect a separate levy and remit it to the appropriate authority, the collection is made under statutory authority as an agent for onward payment and is not part of the price of the goods. Applying that principle, market cess collected under section 12 of the A.P. (Agricultural Produce and Live Stock) Markets Act, 1966 was treated as a statutory collection, not a component of sale consideration. It therefore did not form part of taxable turnover and was not liable to sales tax.

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Issues: Whether market cess collected by dealers under section 12 of the A.P. (Agricultural Produce and Live Stock) Markets Act, 1966 forms part of the taxable turnover for levy of sales tax.

Analysis: Amounts recovered by a dealer from the purchaser are includible in turnover where they are merely part of the sale price. By contrast, where the statute authorises or obliges the dealer to collect a specific levy separately and remit it to the concerned authority, such amount is collected under statutory authority and as an agent for onward payment, and it does not constitute part of the price of the goods. On the facts, the market cess was collected under a statutory obligation and was not a component of the dealer's sale consideration.

Conclusion: The market cess did not form part of the taxable turnover and was not liable to sales tax.

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