Purchase turnover excludes State-advised excess payments where no contract or statutory basis makes them part of sale consideration.

Excess payment by a sugar factory over the statutory minimum price fixed by the Central Government could not be treated as part of the sugarcane purchase price for turnover purposes where it was made only on State Government advice and no proved agreement showed a higher contractual price. The governing principle applied was that, absent statutory or contractual compulsion creating a higher purchase price, amounts paid above the fixed price do not automatically form part of sale consideration or taxable turnover. Payments made merely as advance or under governmental advice, without a contractual basis, were distinguished from consideration under the sale contract. On that reasoning, the State Advised Price was excluded from the assessee's turnover.

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Issues: Whether the excess amount paid by the sugar factory over and above the statutory minimum price fixed by the Central Government as State Advised Price could be treated as part of the purchase price of sugarcane and included in the dealer's turnover for purchase tax purposes.

Analysis: The excess payment was made only on the advice of the State Government and not under any proved agreement between the purchaser and the growers. The governing principle applied was that, where the statutory price is fixed and there is no contractual basis for a higher price, an amount paid in excess of the fixed price cannot automatically be treated as part of the sale price or turnover. The facts were treated as identical to the earlier binding principle that amounts paid merely as advance or under governmental advice, without statutory or contractual compulsion creating a higher purchase price, do not enter the taxable turnover. The decision relied on the distinction between payments forming part of the sale consideration and payments made outside the sale contract.

Conclusion: The State Advised Price could not be included in the assessee's turnover, and the revision petitions failed.

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