Turnover tax computation under Section 6-B permits only expressly authorised deductions from total turnover, excluding imported exemptions.

For levy of turnover tax under Section 6-B of the Karnataka Sales Tax Act, total turnover must be computed as a self-contained formula, and only deductions expressly permitted by Rule 6 and the first proviso to Section 6-B(1) can be excluded. Exemptions or deductions available under other provisions cannot be imported into that computation. On that basis, additional deductions claimed from total turnover, including exempted turnover, were rejected, and the issue was decided against the assessee and in favour of the Revenue.

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Issues: Whether, for the purpose of levy of turnover tax under Section 6-B of the Karnataka Sales Tax Act, deductions other than those specifically permitted can be claimed from total turnover, including exempted turnover.

Analysis: Section 6-B was treated as a self-contained provision governing turnover tax and the expression "total turnover" was understood in the light of Section 2(1)(u-2) of the Act. The governing rule was that, except for the deductions expressly provided under Rule 6 and the first proviso to Section 6-B(1), no further deduction from total turnover is permissible. The cited authorities consistently held that exemptions or deductions available under other provisions cannot be imported into the computation under Section 6-B. On that basis, the assessee's attempt to exclude additional items from total turnover was rejected.

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

Ratio Decidendi: For levy of turnover tax under Section 6-B, only the deductions specifically authorised by the Act and the Rules can be excluded from total turnover, and no additional deduction can be claimed on the basis of exemptions under other provisions.

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