Post-sale commission receipts excluded from taxable turnover where arecanut purchase transactions were already completed.

Amounts received as kadai commission and mahima after completion of the arecanut purchase transaction and dispatch of goods to non-resident principals did not form part of the purchase consideration or taxable turnover. Once the purchases were completed and the price paid, the transaction stood concluded, so later receipts were not includible in taxable turnover or purchase turnover. The Court also relied on its earlier consistent view in the same assessee's case, and the Revenue's challenge failed.

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Issues: Whether amounts received as kadai commission and mahima after the purchase of arecanut was completed and the goods were dispatched to non-resident principals could be included in the assessee's taxable turnover or purchase turnover.

Analysis: The assessee carried on business in arecanut both on its own account and as commission agent for non-resident principals. Once the purchases were completed, the price was paid and the goods were dispatched, the transaction stood concluded. Amounts received thereafter as kadai commission and mahima were received only after completion of the purchase transaction and did not form part of the purchase consideration or turnover exigible to tax. The earlier view taken in respect of the same assessee and the consistent view of the Court supported exclusion of such receipts from taxable turnover.

Conclusion: The receipts towards kadai commission and mahima were not includible in the assessee's taxable turnover or purchase turnover and the Revenue's challenge failed.

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