STATE OF A.P. vs M/S.A.P.PAPER MILLS LTD.

The Supreme Court addressed whether transportation charges and agent's commission paid by M/s A.P. Paper Mills Ltd. constitute 'turnover' under Section 2(s) and are liable to sales tax under Section 6-A of the Andhra Pradesh Sales Tax Act, 1957. The Court held that such charges are part of the total turnover as they are included in the purchase price of raw materials, thus affirming the Commercial Tax Officer's assessment. The appeal was dismissed, upholding the tax liability on the total purchase consideration including these charges.