AIR 2000 SUPREME COURT 551 ::2000 AIR SCW 86 ::1999 (10) Supreme 418 ::(2000) 49 KantLJ(Trib) 12 ::2000 (2) SCC 321 ::(1999) 7 Scale 567 ::2000 (117) STC 457 ::2000 (1) LRI 175 ::(1999) 10 Supreme 418 ::2000 (1) SRJ 468 ::(1999) 10 JT 145 (SC)

Supreme Court Of India

(From : Madras)*

Hon'ble Judge(s): G. T. Nanavati, V. N. Khare , JJ

(A) Tamil Nadu General Sales Tax Act (1 of 1959) , S.2(r), S.3(3)— "Turnover" - Subsidies and expenses incurred by sugar manufacturers or paid to sugarcane growers can be treated as part of sale price and includible in taxable turnover of the sugar manufacturer. The amounts paid by way of consideration by the purchaser to seller of goods in pursuance of the contract of sale can legitimately be regarded as purchase price while calculating the turnover for the purposes of sales tax legislation. The total amount of consideration for the purchase of goods would include the price strictly so called and also other amounts which are payable by the purchaser or which represent the expenses required for completing the sale as, the seller would ordinarily include all of them in the price at which he would sell his goods. But if the sale price is fixed statutorily then the only obligation of the purchaser under the agreement would be to pay that price only and no other amount can be included in the purchase price even if the same is paid by the purchaser to the seller.(Para 18) Therefore, whether the planting subsidy and the freight subsidy given by the appellants-sugar manufacturers to the sugar growers were given by way of consideration for sale of the sugarcane, calls for the examination of the true nature of the transaction between th....