Taxable turnover includes bottle charges where the amount is treated as sale price, not a refundable security deposit.

Amounts charged for bottles were treated as part of taxable turnover under the U.P. Trade Tax Act because the collection was characterised as bottle price rather than a refundable security deposit. The arrangement showed a sale of bottles with only a partial refund on return, not a true bailment. Section 2(h) brought within turnover sums charged for anything done by the dealer in respect of goods at or before delivery, so the bottle charges were taxable. The ruling distinguished United Breweries on the basis that that case involved a clear bailment and refundable security, while the present facts reflected sale consideration with a conditional refund. The revisions therefore failed.

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Issues: Whether the price charged towards bottles, with a part refundable on return of the bottles, formed part of the taxable turnover under the U.P. Trade Tax Act, or was merely a refundable amount under a bailment arrangement.

Analysis: The amounts collected from customers were charged as the price of the bottles and not as a security deposit. The arrangement showed a sale of bottles with only a partial refund on return, rather than a true bailment. Under section 2(h) of the U.P. Trade Tax Act, 1948, sums charged for anything done by the dealer in respect of goods at or before delivery form part of turnover. The decision in United Breweries was inapplicable because it turned on a clear bailment arrangement and refundable security, whereas the present facts showed sale consideration with conditional refund. The reasoning in Kalyani Breweries also supported taxation where the amount was treated as sale price rather than a true deposit under a known bailment.

Conclusion: The bottle charges were part of the turnover and liable to tax, and the revisions failed.

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