Separate accounting for sales tax can justify turnover exclusion even when invoices show only an inclusive price.

Explanation (1-A) to Section 2(r) of the Tamil Nadu General Sales Tax Act, 1959 permits exclusion of sales tax from turnover where the dealer has charged and accounted for tax separately in its books, even if the sale invoice shows only a lump sum inclusive price. The decisive factor is the reliable bifurcation of sale price and tax in the accounts and the actual collection and remittance of tax, not a separate tax split in the invoice itself. Earlier decisions supporting that approach were followed, while contrary authorities were distinguished on facts. The assessee was therefore entitled to the exclusion and the department's revisions failed.

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Issues: Whether, for the purpose of Explanation (1-A) to Section 2(r) of the Tamil Nadu General Sales Tax Act, 1959, the sales tax component can be excluded from turnover when the sale invoices show a lump sum inclusive of tax but the books of account disclose the tax component separately.

Analysis: Explanation (1-A) excludes from turnover any amount charged by a dealer by way of tax separately without including it in the price of the goods. The decisive consideration is whether the tax component is shown and accounted for separately in the dealer's records and whether the tax is collected and paid over, not whether the invoice itself separately itemises the tax. The Tribunal relied on earlier decisions holding that the absence of a separate split-up in the bill does not by itself deny the exclusion when the books of account establish the bifurcation of sale price and tax. The contrary authorities cited for the Revenue were distinguished on facts.

Conclusion: The assessee was entitled to exclusion of the sales tax component from turnover, and the revisions failed.

Final Conclusion: The statutory expression was construed to permit deduction of tax collected as part of an inclusive price where the accounts clearly reflect the tax component separately, resulting in dismissal of the department's revisions.

Ratio Decidendi: Under Explanation (1-A) to Section 2(r) of the Tamil Nadu General Sales Tax Act, 1959, the tax component is excludible from turnover if the dealer's accounts reliably show it separately, even where the invoice states an inclusive price without separate tax entry.

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