State Of Kerala And Ors vs Maharashtra Distilleries Ltd. And Ors

The Supreme Court addressed the issue of whether excise duty under the Kerala Abkari Act is part of the turnover for turnover tax purposes. The Court held that the excise duty, although paid by the Kerala State Beverages Corporation, is an obligation of the manufacturer and thus forms part of their turnover. The High Court's decision favoring the respondents was overturned, establishing that the excise duty is includable in the turnover for tax assessment under the Kerala Sales Tax Act.