Reimbursement not forming part of sale price cannot be included in turnover when it is unrelated to a specific sale.

Reimbursement received towards storage cost and loss of interest was not part of turnover because it did not arise from any single sale transaction and was not collected from the purchaser as part of the sale price. The applicable principle was that a subsidy or reimbursement unconnected with the price of a specific sale cannot be included in turnover. The assessment records also showed that the sales were supported by bills as required by law and that no amount was realised beyond the billed price, so the amount could not be treated as turnover.

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Issues: Whether the reimbursement received towards storage cost and loss of interest could be treated as part of the dealer's turnover under section 2(s) of the A.P. General Sales Tax Act, 1957.

Analysis: The amount in question represented reimbursement towards storage cost and loss of interest and did not arise as part of any single sale transaction. The governing principle, as applied, was that a subsidy or reimbursement unconnected with the price of a specific sale and not collected from the purchaser cannot be included in turnover. The assessment records also showed that the sales were covered by bills as required by law and that no amount was collected in excess of the billed price.

Conclusion: The amount could not be treated as part of turnover, and the revision was dismissed.

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