Section 8-A deduction formula applies only to embedded sales tax, not tax separately charged and collected.

Section 8-A of the Central Sales Tax Act, 1956 permits deduction of the tax component through the prescribed formula only where the tax is embedded in the sale price and not separately charged. The proviso excludes deduction where the dealer has already collected the tax and it is otherwise deducted from the aggregate of sale prices. Accordingly, the formula does not apply to central sales tax separately charged and collected, and the Tribunal's view was upheld.

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Issues: Whether the formula under section 8-A of the Central Sales Tax Act, 1956 applies only when central sales tax is embedded in the sale price and not when it is separately charged and collected.

Analysis: Section 8-A allows deduction of the tax component by applying the prescribed formula while determining turnover, but the proviso denies such deduction where the amount by way of tax has already been collected by the registered dealer and otherwise deducted from the aggregate of sale prices. On this reading, the formula is attracted only where the sale price is inclusive of tax and the tax is not separately charged. Where central sales tax is separately charged and collected, the formula has no application.

Conclusion: The formula under section 8-A does not apply where central sales tax is separately charged and collected; the revision was rightly dismissed.

Final Conclusion: The Tribunal's view was upheld and the revision failed, leaving the assessee's position undisturbed.

Ratio Decidendi: The deduction formula under section 8-A of the Central Sales Tax Act, 1956 applies only to tax embedded in the sale price and not to tax separately charged and collected.

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