Notional rubber cess cannot be added to turnover when the cess liability arises only on manufacture after the sale of raw rubber.

Notional rubber cess payable only by the manufacturer under the Rubber Act, 1947 could not be added to the assessee's sales tax turnover where the assessee sold raw rubber before any cess liability arose. The taxable event under the Act was manufacture of rubber products, not the earlier sale of raw rubber, and the assessee neither paid nor collected the cess. On that basis, the cess was too remote to form part of the assessee's turnover for sales tax purposes, and its inclusion was impermissible.

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Issues: Whether the notional amount of rubber cess payable by the manufacturer under the Rubber Act, 1947 could be included in the sales tax turnover of the assessee who sold raw rubber before the cess liability arose.

Analysis: The liability to pay rubber cess was held to rest only on the manufacturer of rubber products, and the taxable event under the Rubber Act was the manufacture of goods, not the earlier sale of raw rubber by the assessee. The assessee neither paid nor collected rubber cess, and its sales occurred prior to the point at which any cess liability could arise. On that basis, the notional cess could not form part of the assessee's turnover for sales tax purposes.

Conclusion: The inclusion of notional rubber cess in the assessee's sales tax turnover was not permissible, and the assessee succeeded.

Ratio Decidendi: A levy payable only by the manufacturer, where the taxable event occurs after the assessee's sale and no cess is paid or collected by the assessee, cannot be added notionally to the assessee's taxable turnover.

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