Taxable turnover deductions require authorised support and reliable sales records; separately booked administrative charges were treated as part of sale price.

Administrative charges included in the pricing structure could not be excluded from taxable turnover as a deductible item under the Karnataka Sales Tax Rules, 1957, because deductions are allowed only when specifically authorised by the rule. The assessee failed to produce sales invoices or other reliable sales records showing that the amount was outside the sale price, and the separate credit in the books was treated as a matter of accounting convenience rather than proof of a permissible exclusion. On that basis, the charges were held to form part of the taxable sale price and the claimed deduction was disallowed.

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Issues: Whether the administrative charges collected by the assessee could be excluded from taxable turnover as a permissible deduction under the Karnataka Sales Tax Rules, 1957.

Analysis: The assessee did not produce the sales invoices before the assessing authority. The record showed that the amount described as administrative charges was included in the pricing structure and then separately credited in the books as a matter of accounting convenience. In the absence of invoices, the authority had no reliable basis to treat the amount as something outside the sale price or as a deduction permissible under rule 6. Since taxable turnover is computed only by allowing deductions authorised by the rule, an amount not covered by the rule could not be excluded merely because it was separately accounted for.

Conclusion: The administrative charges were not deductible from taxable turnover, and the disallowance was upheld against the assessee.

Final Conclusion: The revision petition failed because the claimed administrative charges were treated as part of the taxable sale price and no allowable deduction was established.

Ratio Decidendi: A deduction from taxable turnover cannot be allowed unless it is specifically authorised by the applicable turnover computation rule and is supported by reliable sales records establishing that the amount was not part of the sale price.

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