Separate entry tax billed to purchasers forms part of sale price and taxable turnover absent express statutory collection authority.

Entry tax separately collected by a dealer under the Karnataka Tax on Entry of Goods Act, 1979 was treated as part of the sale consideration under the Karnataka Sales Tax Act, 1957 because the statute did not expressly authorise collection of that levy on behalf of the State. The court noted that sale price and taxable turnover include amounts payable by the purchaser as part of the bargain unless a specific exclusion applies. Since the entry tax was billed separately in invoices but not shown to be a neutral levy collected as agent of the State, it was includible in taxable turnover. The dealer's challenge was rejected.

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Issues: Whether entry tax separately collected by a dealer under the Karnataka Tax on Entry of Goods Act, 1979 forms part of the sale price and taxable turnover under the Karnataka Sales Tax Act, 1957.

Analysis: The charging provision under the entry tax law levies tax on entry of goods into a local area, while section 3A only restricts unauthorised collection and does not authorise the dealer to collect the tax as an agent of the State. Under the sales tax law, sale price and turnover comprise the total consideration for transfer of property in goods, and amounts payable by the purchaser as part of the bargain are includible unless a statute specifically permits exclusion. The Court distinguished the cases relied on for the dealer on the ground that those decisions turned on statutory provisions expressly requiring collection on behalf of the State. Here, the entry tax charged separately in invoices was not held to be a separate neutral levy collected as agent of the State, but an amount recovered from the purchaser as part of the price.

Conclusion: Entry tax separately collected and billed by the dealer formed part of the sale price and was includible in taxable turnover; the assessee's contention was rejected.

Ratio Decidendi: Unless the governing statute expressly authorises collection of the tax on behalf of the State, an amount recovered from the purchaser, even if separately shown as tax, constitutes part of the sale consideration and is includible in turnover.

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