Excise duty not payable by buyer excluded from taxable turnover where contract placed reimbursement on the Government.

Excise duty shown in the bill but not payable by the customer under the contract was not part of the taxable turnover for sales tax purposes. Because the contract made the duty reimbursable by the Government and placed no liability on the buyer, the duty could not be treated as part of the amount payable by the purchaser or included in the assessable turnover. The Tribunal's inclusion of the duty was therefore erroneous, and the revision cases were allowed in favour of the assessee.

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Issues: Whether excise duty shown in the bill but not payable by the customer under the contract formed part of the taxable turnover for sales tax purposes.

Analysis: The contract stated that excise duty was reimbursable by the Government and that the customer would not pay it. On the same contractual footing as the earlier decision relied on, the duty was not part of the amount payable by the buyer and therefore could not be included in the assessable turnover.

Conclusion: Excise duty did not form part of the taxable turnover and its inclusion by the Tribunal was erroneous, with the result that the revision cases were allowed in favour of the assessee.

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