THE STATE OF TAMIL NADU vs MC. DOWELL AND COMPANY LTD., MADRAS

The Supreme Court addressed the issue of whether deposits collected for empty bottles by Mc. Dowell and Company Ltd. should be included in the sales turnover for sales tax purposes. The Court held that these deposits, although recorded separately, do not constitute part of the sale price of the bottles, as they retain their character as deposits refundable upon return of the bottles. The judgment of the High Court was upheld, affirming that the deposits were not taxable as part of the sales turnover under the relevant sales tax laws.