Turnover inclusion of sale-linked charges: bill discounting, hundi stamps, and delivery-related bank charges formed part of sale consideration.

Amounts collected as an inseparable part of the sale arrangement are includible in turnover when they form part of the sale consideration and are not supported by any separate agreement. Bill discounting charges and hundi stamps included in the bill, payable through the stipulated banking mechanism after a fixed period, were treated as part of the sale transaction and therefore includible in turnover. On the same principle, bank charges collected uniformly for effecting delivery of goods, and paid before release of the goods, were also held includible in turnover. The revision cases failed, with no relief to the assessee.

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Issues: (i) Whether bill discounting charges and hundi stamps formed part of the assessee's turnover. (ii) Whether bank charges collected for effecting delivery of goods formed part of the assessee's turnover.

Issue (i): Whether bill discounting charges and hundi stamps formed part of the assessee's turnover.

Analysis: The charges were collected as part of the sale arrangement, the consideration was payable through the specified banking mechanism after a stipulated period, and the amounts were included in the bill. They were not post-sale charges and there was no separate agreement treating them as distinct from the sale transaction.

Conclusion: Yes. Bill discounting charges and hundi stamps were held to be includible in the assessee's turnover, in favour of Revenue.

Issue (ii): Whether bank charges collected for effecting delivery of goods formed part of the assessee's turnover.

Analysis: The charges were uniformly collected in respect of goods sold for effecting delivery, and the assessee would not part with the goods unless the purchaser paid those charges. They were treated as part of the sale transaction on the same principle as the first issue.

Conclusion: Yes. Bank charges were held to be includible in the assessee's turnover, in favour of Revenue.

Final Conclusion: The revision cases failed, and the assessee obtained no relief.

Ratio Decidendi: Amounts collected as an inseparable part of the sale arrangement and treated as part of sale consideration are includible in turnover.

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