Turnover computation excludes transport losses unless the statute expressly allows deduction for mortality or weight loss.

Taxable turnover under the Kerala General Sales Tax Act and Rules is computed from the real sale consideration, and only deductions expressly authorised by the statute and rules can be claimed. The Kerala High Court notes that Section 5 is the charging provision, while the definitions in Section 2 and Rule 9 govern turnover computation. Because neither the Act nor the Rules provide a deduction for mortality or weight loss of live chicken during transportation, such business loss cannot be excluded from taxable turnover. The Revenue's objection therefore succeeds, and the claimed deduction is not allowable.

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Issues: Whether deduction from turnover is allowable towards mortality and weight loss of live chicken during transportation while computing taxable turnover under the Kerala General Sales Tax Act, 1963 and the Kerala General Sales Tax Rules, 1963.

Analysis: Tax under the sales tax law is levied on the real consideration for sale, and taxable turnover is the balance left after allowing only those deductions that are specifically authorised by the Act and the Rules. Section 5 of the Kerala General Sales Tax Act, 1963 is the charging provision, while the definitions of dealer, sale, turnover, total turnover and taxable turnover in Section 2, together with Rule 9 of the Kerala General Sales Tax Rules, 1963, govern the computation. The Rules do not provide any deduction for weight loss or mortality of goods during transport. Although a dealer may structure prices to accommodate such business risks, that does not create a statutory deduction for tax computation. The claim for deduction based on presumed mortality and weight loss was therefore outside the permissible scheme of the Act and the Rules.

Conclusion: Deduction towards mortality and weight loss during transportation is not allowable while determining taxable turnover, and the Revenue's challenge succeeds.

Ratio Decidendi: Taxable turnover can be reduced only by deductions expressly permitted by the governing statute and rules, and no deduction can be claimed for transportation loss or mortality unless the law specifically authorises it.

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