https://www.taxtmi.com/caselaws?id=86687 Turnover tax borne by a manufacturer and not collected from buyers is deductible from the wholesale price for refund purposes. Section 18(3) of the Karnataka Sales Tax Act, 1957 prohibits a dealer liable to turnover tax from collecting it from purchasers. Where the manufacturer fixes a sale price without recovering any separate turnover-tax amount, the tax is absorbed in the wholesale price and forms part of its price structure. The Bombay Tyres International principle does not apply where the tax has not been passed on to buyers. The refund claim succeeds on the basis that the turnover tax is an admissible deduction. en-us Fri, 09 May 1997 00:00:00 +0530 Fri, 26 Aug 2011 15:23:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=86687 Turnover tax borne by a manufacturer and not collected from buyers is deductible from the wholesale price for refund purposes. Section 18(3) of the Karnataka Sales Tax Act, 1957 prohibits a dealer liable to turnover tax from collecting it from purchasers. Where the manufacturer fixes a sale price without recovering any separate turnover-tax amount, the tax is absorbed in the wholesale price and forms part of its price structure. The Bombay Tyres International principle does not apply where the tax has not been passed on to buyers. The refund claim succeeds on the basis that the turnover tax is an admissible deduction. Case-Laws Central Excise Fri, 09 May 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=86687