Purchase turnover includes transport charges and plantation subsidy when linked to sugarcane procurement and delivery.

Payments made to third-party lorry owners for freight and delivery, together with plantation subsidy linked to procurement and scheduled supply of sugarcane, formed part of the purchase consideration and were includible in purchase turnover for levy of purchase tax. The court applied the settled authority that transport-related charges and supply-linked incentives do not lose their character as consideration merely because they are separately described or routed through third parties. Separate invoicing or bifurcation did not alter the tax treatment, so the assessee's challenge failed.

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Issues: Whether the freight or delivery charges paid to third-party lorry owners, together with plantation subsidy, formed part of the purchase price of sugarcane and were liable to be included in the purchase turnover for levy of purchase tax.

Analysis: The dispute was governed by the settled line of authority holding that where payments are linked to the procurement and scheduled delivery of sugarcane under the contractual arrangement, such amounts do not remain outside the sale transaction merely because they are separately described or are paid to third parties. The earlier Full Bench view and the affirming decisions of the Supreme Court were applied to hold that transport-related payments made to secure delivery of sugarcane, and plantation subsidy given as an incentive connected with supply, are components of the consideration for the purchase of sugarcane. Mere bifurcation of the invoice or the fact that the payments were routed separately did not alter their character.

Conclusion: The transport charges and plantation subsidy were includible in the purchase price and assessable to purchase tax, and the assessee's challenge failed.

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