Separately charged trade tax is excluded from turnover when invoices and records clearly show the tax component recoverable from buyers.

Where sale invoices and the sales day book separately showed the gross price, the trade tax component and the assessable value, the amount realised as trade tax was treated as separately charged under the U.P. Trade Tax Act. The statutory definition of turnover excluded tax realised on sale or purchase of goods when that amount was separately indicated. On that basis, the trade tax component could not be included in turnover, and the assessee succeeded on the disputed point.

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Issues: Whether the amount of trade tax realised from customers was separately charged so as to be excluded from turnover under the U.P. Trade Tax Act.

Analysis: The invoice format and sales day book showed the gross price, the amount of trade tax leviable on the sale, and the assessable value separately. The statutory definition of turnover excluded amounts realised as trade tax on sale or purchase of goods when such amount is separately charged. The Court held that the manner of billing and accounting made it clear that the trade tax was not embedded in the sale price alone, but was separately indicated and recoverable from buyers. On that basis, the amount could not be included in turnover.

Conclusion: The issue was decided in favour of the assessee, and the trade tax amount was held to be excludable from turnover.

Final Conclusion: The revision succeeded, the Tribunal's order was set aside, and the dealer's appeal on the disputed point was allowed.

Ratio Decidendi: Where sale invoices and connected records clearly show the tax component as separately indicated and recoverable, the amount realised as trade tax is excluded from turnover under the statutory definition.

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