Fertiliser subsidy excluded from turnover, so reassessment notices failed for want of escapement under sales tax law.

Central Government fertiliser subsidy was treated as outside "turnover" under section 2(i) of the U.P. Sales Tax Act, 1948, because turnover covers only the aggregate amount for which goods are sold and the subsidy was not sale price received in any specific transaction. On that basis, no escapement of turnover or under-assessment could be inferred, so the precondition for reassessment action under section 21 was not satisfied. The reassessment notices were therefore invalid.

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Issues: Whether the subsidy allowed by the Central Government on fertiliser was includible in the "turnover" under section 2(i) of the U.P. Sales Tax Act, 1948, and whether reassessment notices under section 21 of the Act were valid.

Analysis: The turnover definition covers only the aggregate amount for which goods are supplied or sold by a dealer. The subsidy was found to be unrelated to any specific sale transaction and was not a sale price received by the manufacturer. The reasoning followed the view that such subsidy cannot form part of turnover. Since the subsidy was excludible, there was no basis to infer escapement of turnover or under-assessment, and the precondition for action under section 21 was absent.

Conclusion: The subsidy was held not includible in turnover, and the reassessment notices were held invalid.

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