Turnover tax exemption fee must exclude non-taxable sales and transfers from the annual gross turnover base.

For computing a turnover tax exemption fee based on "annual gross turnover," non-taxable components outside the Act's taxing power cannot be included. The expression was read in light of the statutory definitions of turnover and taxable turnover, and the State's power to exempt was treated as no wider than its power to tax. Branch transfers, consignment transfers, inter-State sales and export sales were therefore excluded from the computation base. On that reasoning, the revisional challenge to the assessment failed and the assessee's computation was accepted.

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Issues: Whether turnover tax exemption fee could be computed on the basis of annual gross turnover so as to include branch transfers, consignment transfers, inter-State sales and export sales.

Analysis: The dispute was treated as covered by an earlier decision holding that the expression "annual gross turnover" in the relevant notification must be read in the context of the Act's definition of turnover and taxable turnover. The legal basis applied was that the State's power to exempt cannot extend beyond its power to tax, and transactions outside the taxing competence of the statute cannot be included for computing the exemption fee. On that reasoning, non-taxable components such as branch transfers, consignment transfers, inter-State sales and export sales were held to be excluded from the computation base.

Conclusion: The exemption fee could not be computed by including those non-taxable components, and the revision petition failed.

Final Conclusion: The revisional challenge to the assessment of turnover tax did not succeed, and the assessee's computation position was accepted.

Ratio Decidendi: For purposes of computing a statutory exemption fee based on annual gross turnover, non-taxable turnovers outside the taxing power of the Act cannot be included, because the power to exempt presupposes the power to tax.

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