Yarn cess as excise duty was included in taxable turnover because it formed part of sale consideration.

Yarn cess levied under section 5-A of the Textiles Committee Act, 1963 was treated as a duty of excise, and the Court applied the principle that excise duty on manufacture, when collected from purchasers and passed on in the sale price, forms part of the consideration for sale. Because the sales tax definition of turnover included sums charged by the dealer, the collected cess was brought within taxable turnover. The cess collected by the assessee was therefore includible in turnover and liable to sales tax.

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Issues: Whether yarn cess collected under section 5-A of the Textiles Committee Act, 1963 forms part of the taxable turnover for the purpose of sales tax.

Analysis: The cess levied under section 5-A is a duty of excise. The Court applied the principle that excise duty is a tax on manufacture or production and relied on the Supreme Court's settled view that such duty, when collected from purchasers and passed on to consumers, constitutes part of the consideration for sale. The relevant sales tax definition of turnover also included sums charged by the dealer and thus brought the collected cess within taxable turnover.

Conclusion: The yarn cess collected by the petitioners forms part of the turnover and is liable to be included for levy of sales tax, against the assessee.

Ratio Decidendi: A cess levied as a duty of excise on manufactured goods and collected from purchasers forms part of the sale turnover where the incidence is passed on and the sales tax law includes such collection within the dealer's consideration.

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