KANAKARAJ, J.

The assessee reported a total and taxable turnover of Rs. 7, 37, 71, 056.18 and Rs. 2, 83, 55, 079.89, respectively, for the year 1978-79. We are concerned in this case only with a sum of Rs. 1, 59, 305.48 which was paid by the assessee to certain cane growers as subsidy for early planting. The question is whether this subsidy paid to the cane growers can be treated as forming part of purchase turnover of sugarcane. The assessing authority found that as long as the amount was paid in lieu of sugarcane supplied by the cane growers to the assessee, the subsidy amount is includible in the taxable turnover. A notice was therefore issued to the assessee and after considering their objections the assessing authority came to the conclusion that the payment of the subsidy had nexus to the supply of sugarcane. It was a payment to the sugarcane growers in addition to the price of sugarcane. Accordingly, the said sum of Rs. 1, 59, 305.48 was included in the purchase turnover of sugarcane and tax at 12 per cent under entry 62 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, was levied. Consequently the additional sales tax at 0.7 per cent was also i