STATE OF KERALA vs MAHARASHTRA DISTILLERIES LTD. .

The Supreme Court addressed whether excise duty under the Kerala Abkari Act is included in the turnover for turnover tax purposes. The Court held that the excise duty, although paid by the Kerala State Beverages Corporation, does not form part of the turnover of the manufacturers/distillers for the purpose of turnover tax under the Kerala Sales Tax Act. The High Court's decision favoring the respondents was upheld, establishing that the obligation to pay excise duty does not shift the burden onto the manufacturers for tax calculation purposes.