Turnover tax computation must follow statutory context and noscitur a sociis, using the highest tax conceded or actually paid.

A taxing provision for determining turnover tax is construed by its statutory context, and the phrase referring to the highest turnover tax payable or paid in the previous three consecutive years is read with noscitur a sociis. The relevant benchmark is the highest turnover tax as conceded in the return or accounts, or the turnover tax actually paid for those years, as expressly stated in the statute. The construction suggested by the dealer was rejected because it would cut across the clear wording of the provision, and the literal interpretation adopted by the Tribunal was treated as correct.

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Issues: Whether, for the purpose of determining the applicable turnover tax under the relevant provision, the highest turnover tax payable or paid in the previous consecutive three years has to be ascertained on the basis of the return, the accounts, or the tax actually paid.

Analysis: The Full Bench ruling, which was followed, construed the provision by reading the words used in their statutory setting and applying the principle of noscitur a sociis. It held that the expression refers to the highest turnover tax payable as conceded in the return or accounts, or the turnover tax paid for the previous consecutive three years, and that the construction urged by the dealer would defeat the clear wording of the provision. The Tribunal's interpretation was treated as the correct and literal construction.

Conclusion: The question was answered against the dealer and in favour of the Department.

Ratio Decidendi: Where a taxing provision links alternative factual bases for computing turnover tax, the phrase must be construed in its statutory context and, applying noscitur a sociis, the computation follows the highest tax as conceded in returns or accounts, or as actually paid, as expressly provided by the statute.

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