Government reimbursement of excise duty is not sale consideration and cannot be added to turnover for central sales tax.

Central excise duty reimbursed by the Central Government in respect of deemed export supplies is not part of the sale price or turnover for central sales tax purposes where the purchaser neither pays nor is liable to pay that duty. Because the reimbursement is not consideration paid by or on behalf of the purchaser, it cannot be added to the dealer's turnover, and central sales tax is not leviable on that amount. Interest and penalty founded on such inclusion also fail. The assessee's relief was upheld and the revision failed.

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Issues: Whether Central excise duty reimbursed by the Central Government to the seller in respect of deemed export supplies forms part of the sale price or turnover for levy of central sales tax.

Analysis: Under the Central Sales Tax Act, sale price is the amount payable to the dealer as consideration for the sale, and turnover is linked to the aggregate of sale prices received and receivable. Where the purchaser neither pays nor is liable to pay the excise duty, and the duty is reimbursed by the Central Government as a facility for deemed exports, the reimbursement is not consideration paid by or on behalf of the purchaser. Such reimbursement therefore does not become part of the sale price or turnover for central sales tax purposes. Consequently, interest and penalty predicated on inclusion of that component also fail.

Conclusion: Central excise duty reimbursed by the Central Government and not paid by the purchaser is not includible in the sale price or turnover, and central sales tax is not leviable on that amount. The revision failed and the relief granted to the assessee was upheld.

Ratio Decidendi: Government reimbursement of excise duty, where not paid by or on behalf of the purchaser, does not constitute consideration for the sale and cannot be added to sale price or turnover for central sales tax.

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