Taxable turnover excludes purchaser-paid export pass fee; inter-State alcohol sales remain taxable under binding precedent.

Inter-State sales of rectified spirit and denatured spirit were held outside the claimed exemption, so central sales tax remained payable on that issue. By contrast, export pass fee payable by an out-of-State purchaser on denatured spirit was held not includible in the distillery's taxable turnover because the fee was the purchaser's liability and was neither received nor receivable by the seller as sale consideration. The revision was allowed in part, and the Tribunal's order was modified accordingly. The governing principle stated was that amounts legally payable by the purchaser and not realised by the seller are excluded from taxable turnover, while binding precedent controls the taxability of inter-State alcohol sales.

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Issues: (i) Whether inter-State sales of rectified spirit and denatured spirit were exempt from central sales tax along with export duty; (ii) Whether export pass fee payable by an out-of-State purchaser on purchase of denatured spirit was includible in the taxable turnover of the distillery.

Issue (i): Whether inter-State sales of rectified spirit and denatured spirit were exempt from central sales tax along with export duty.

Analysis: The issue had already been answered by binding precedent relied upon by the parties. On that basis, the Court treated the inter-State sale of alcohol as not covered by the claimed exemption and accepted the Revenue's position that central sales tax remained payable.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Issue (ii): Whether export pass fee payable by an out-of-State purchaser on purchase of denatured spirit was includible in the taxable turnover of the distillery.

Analysis: The Court applied earlier decisions holding that export pass fee is the liability of the purchaser/exporter, not of the distillery, and that such amount is neither received nor receivable by the seller as consideration for the sale. It therefore does not form part of sale price or taxable turnover within the meaning of the relevant turnover provisions.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

Final Conclusion: The revision was allowed in part, with the Tribunal's order modified to the extent indicated and the matter sent back for consequential action in accordance with the findings recorded.

Ratio Decidendi: Amounts that are legally payable by the purchaser and are neither realised nor receivable by the seller as consideration for the sale are not includible in the seller's taxable turnover; similarly, where binding precedent has resolved the taxability of inter-State alcohol sales, that determination governs the case.

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