2002 Supreme(Ker) 671

IN THE HIGH COURT OF KERALA AT ERNAKULAM
G. Sivarajan, K. Balakrishnan Nair, JJ.
SOUTH INDIA CARBONIC GAS INDUSTRIES LTD.
Versus
STATE OF KERALA. (AND OTHER CASES)
T.R.C. Nos. 40, 41 and 42 of 2001
Decided On: Decided On : 07-11-2002

Headnote:

Kerala General Sales Tax Act, 1963 - Sections 2(xxvii) and 5(1)(iii) - Petitioner cleaned and tested the cylinders before filling them with carbon dioxide and sold carbon dioxide in cylinders and had raised an invoice wherein the petitioner charged the expenses incurred for cleaning and testing the cylinders separately - He had to pay the amount shown in the invoice - Charges incurred by the petitioner in cleaning and testing the cylinders were collected by the petitioner from the customers by including them in the invoice itself - Held, Explanation 2(i) to S.2(xxvii) of the KGST Act, which defines "turnover" provides that the amount for which goods are sold shall include any sums charged for anything done by the dealer in respect of the goods sold at the time of, or before, the delivery thereof - This was not a situation attracting the provisions of explanation (2) to the definition of "turnover" in S.2(xxvii) because the question of invoking explanation (2) to S.2(xxvii) arises only if something more than the invoice value is to be included - What was charged in the invoice as consideration for the sale of gases in cylinders would form part of the turnover as per the definition of turnover in S.2(xxvii) of the Act