Turnover includes excise duty and sacheting charges in liquor sales tax calculation, as part of sale consideration.

Sales tax under the Bihar Finance Act applies to the full sale consideration for country liquor, not merely the cost price. Amounts forming part of the wholesale price, including excise duty collected through the retailer on behalf of the manufacturer and mandatory sacheting charges fixed under the excise regime, are includible in gross turnover because they constitute valuable consideration for the sale. Excise duty does not lose its character as part of turnover simply because it is routed through the purchaser rather than directly received by the seller. The Patna HC therefore treated the impugned notification as valid.

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Issues: Whether sales tax under the Bihar Finance Act is leviable only on the cost price of country liquor or also on the wholesale price comprising excise duty and sacheting cost.

Analysis: The relevant definitions of gross turnover, sale and sale price under the Bihar Finance Act make tax payable on the aggregate amount receivable as valuable consideration for the sale of goods. Under the Bihar Excise Act and the governing rules, the retail vendor obtains liquor only after paying the wholesale price fixed by the authorities, which includes excise duty and sacheting charges. Excise duty is a levy on the manufacturer or producer, but its collection may be routed through the purchaser for convenience; payment made by the retailer in that manner is nonetheless on behalf of the manufacturer and forms part of the sale consideration. The cost of sacheting is also included in the price fixed under the excise law and therefore likewise enters the sale price. The authorities relied on the settled principle that excise duty does not cease to be part of turnover merely because it is not physically received by the seller.

Conclusion: Sales tax is leviable on the wholesale price including excise duty and sacheting cost, and the impugned notification was valid.

Ratio Decidendi: For sales tax purposes, all amounts forming part of the consideration for sale, including excise duty paid on behalf of the manufacturer and mandatory sacheting charges, are includible in turnover even if not directly received by the seller.

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