Fertilizer subsidy excluded from turnover as it is not part of sale consideration under sales tax law.

Central Government fertilizer subsidy was treated as outside the statutory concept of "turnover" under the U.P. Sales Tax Act, 1948. The court applied an earlier decision and followed Andhra Pradesh High Court authorities because section 2(i) of the U.P. Act was substantially in pari materia with the corresponding provision considered there. As the subsidy was not part of the sale consideration, it was not includible in turnover and could not be subjected to sales tax. The writ petition therefore succeeded, and the taxing authority was restrained from levying tax on the subsidy amount for the relevant assessment years.

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Issues: Whether subsidy granted by the Central Government on fertilizer forms part of "turnover" for sales tax purposes under the U.P. Sales Tax Act, 1948.

Analysis: The question was treated as covered by an earlier decision of the same Court following Andhra Pradesh High Court authorities on the meaning of "turnover". The definition in section 2(i) of the U.P. Sales Tax Act, 1948 was held to be substantially in pari materia with the corresponding Andhra Pradesh provision, and the subsidy paid by the Government of India was held not to fall within the statutory concept of turnover.

Conclusion: The subsidy could not be included in turnover and was not liable to sales tax under the U.P. Sales Tax Act, 1948.

Final Conclusion: The writ petition succeeded and the taxing authority was prohibited from levying tax on the subsidy amount for the relevant assessment years.

Ratio Decidendi: Subsidy paid by the Central Government on fertilizer, not forming part of the sale consideration, is not includible in "turnover" under the sales tax law.

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