Job-work sale proceeds excluded from turnover where excess goods were not manufactured on the dealer's own account.

Sale proceeds of excess M.S. rounds arising during job-work conversion of billets were held outside the assessee's turnover because, under the Assam Finance (Sales Tax) Act, 1956, tax liability attaches only to taxable goods manufactured or processed by a dealer on its own account, and "sale price" is confined to the money consideration for such goods. As the conversion was done for the billet owners, the excess rounds did not constitute the job worker's own taxable sales. The court applied strict construction of the charging provision and rejected any extension of tax liability beyond the statute's clear terms; the assessment and demand were therefore set aside.

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Issues: Whether the sale proceeds of excess M.S. rounds retained by the assessee in the course of job-work conversion of billets into M.S. rounds could be treated as "sale price" and included in its "turnover" so as to attract tax under the Assam Finance (Sales Tax) Act, 1956.

Analysis: The statutory scheme fastens tax liability on a dealer only in respect of taxable goods manufactured, made or processed by him in Assam, or brought into Assam for sale, and the expression "sale price" is confined to the money consideration for such goods. The assessee's conversion activity was undertaken on behalf of the owners of the billets, and the excess M.S. rounds arose only as a result of the agreed manufacturing process. Since the assessee did not manufacture those excess rounds on its own behalf as a dealer, their sale proceeds did not answer the statutory definition of "sale price" and therefore could not be added to "turnover". In a taxing statute, liability cannot be imposed by extending the language of the provision beyond its clear terms.

Conclusion: The excess M.S. rounds were not taxable in the assessee's hands and the demand could not be sustained.

Final Conclusion: The petitions succeeded, the impugned assessment and demand orders were set aside, and the assessee was held not liable to pay tax on the sale proceeds of the excess M.S. rounds.

Ratio Decidendi: Under a taxing statute, tax liability arises only when the transaction falls squarely within the statutory definition of sale price and turnover; goods produced during job work for the owner cannot be taxed in the job worker's hands unless the statute clearly brings their sale proceeds within the charging provision.

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