MOHAN BREWERIES & DISTILLERIES LTD. ETC. ETC. vs COMMERCIAL TAX OFFICER, MADRAS & ORS.

The Supreme Court addressed the issue of whether excise duty on potable liquor, paid by purchasers, should be included in the taxable turnover under the Tamil Nadu General Sales Tax Act. The Court interpreted Sections 17-C, 18-A, and 18-B of the Tamil Nadu Prohibition Act, 1937, concluding that the excise duty is not part of the taxable turnover for sales tax purposes. The Court held that the excise duty is a separate liability and does not form part of the sale price, thus ruling in favor of the appellants.