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Issues: Whether the amount collected from purchasers as a 27% differential excise-duty deposit and kept in a contingency account formed part of the sale price and was includible in taxable turnover.
Analysis: The collection arose directly out of completed sale transactions and was taken from customers on the footing that it might become refundable if the higher excise-duty liability did not materialise. The amount remained with the dealer and was not shown to be a separate charge for any independent service or post-sale activity. For purposes of the Rajasthan Sales Tax Act, 1954 and the Central Sales Tax Act, 1956, sale price includes the amount payable as consideration for the sale, and turnover consists of the aggregate of sale prices received or receivable. Authorities dealing with unrelated deposits, service charges, or collections having no nexus with the sale were distinguished, while the principle that amounts integrally connected with the sale transaction may form part of sale price was applied.
Conclusion: The 27% differential amount was held to be part of the sale price and was rightly included in the taxable turnover; the revision petitions failed.
Ratio Decidendi: Amounts collected from buyers as part of the consideration arising from sale transactions, even if described as refundable deposits against a possible contingency, form part of sale price where they retain a direct nexus with the sales and are not shown to be independent service or other non-sale charges.
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