Tisco General Office Recreation Club vs State Of Bihar And Ors.

The Supreme Court held that subsidies provided by TISCO to the appellant dealer running a canteen do not constitute part of the 'sale price' under Section 2(u) of the Bihar Finance Act, 1981. The Court clarified that 'gross turnover' as defined in Section 2(j) includes only the amounts received for the sale of goods, and since the subsidies were not directly related to the sale of food items, they cannot be included in the turnover for sales tax purposes. Consequently, the appeal was allowed, overturning the decisions of the lower authorities which had included the subsidy in the taxable turnover.