Sale consideration includes commitment charges linked to delayed payment and delivery, so they enter taxable turnover.

Commitment charges linked to the unpaid sale price and delay in payment or delivery formed part of the true consideration passing from the purchaser to the dealer under the Tamil Nadu General Sales Tax Act, 1959. Because turnover includes the aggregate amount for which goods are sold for cash, deferred payment, or other valuable consideration, the amount was treated as part of sale consideration and included in taxable turnover. The provision on situs of sale was held irrelevant to this question. The inclusion of the charges in taxable turnover was upheld against the assessee.

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Issues: Whether the commitment charges or interest collected up to the time of delivery formed part of the taxable turnover under the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The statutory scheme treats turnover as the aggregate amount for which goods are sold for cash, deferred payment, or other valuable consideration, and taxable turnover is derived from that turnover. The payment described as commitment charges was linked to the unpaid sale price and to the delay in payment and delivery. The agreement did not show that the charges were something distinct from the consideration for the sale. The provision dealing with the situs of sale was found irrelevant to this issue. The legal test applied was whether the amount formed part of the true consideration passing from the purchaser to the dealer.

Conclusion: The commitment charges formed part of the sale consideration and were rightly included in the taxable turnover, against the assessee.

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