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2022 (4) TMI 1545 - HC - VAT and Sales TaxLevy of Service Tax - Mandi Shulk should be included in the sale price of the goods sold by the Nigam in the Mandi or not - HELD THAT:- he Hon'ble Supreme Court in the case of ANAND SWARUP MAHESH KUMAR VERSUS THE COMMISSIONER OF SALES TAX [1980 (9) TMI 238 - SUPREME COURT] was considering the question relating to inclusion of the market fee and the commission, otherwise called 'dami', payable to the commission agent, operating within a market area established under the Adhiniyam, in the turnover of purchases of the applicant for the purposes of levy of sales tax under Section 3D of the U.P. Sales Tax Act, 1948 - After taking into consideration the reported cases of Paprika Ltd. & Anr. v. Board of Trade; and Love v. Norman Wright (Builders) Ltd., the Hon'ble Supreme Court has come to the conclusion that Mandi Shulk should not be included in the sale price. In both the judgments referred to hereinabove, it has been laid down that the price payable by a purchaser under a contract of goods for the purpose of certain penal provisions was the price fixed by the contract, and a seller who wished to recover the amount of the purchase tax should, except where an adjustment was authorized by the Statute, include that amount in the price so fixed. The Hon'ble Supreme Court, therefore, held that the contention of the appellant, in the reported case, that market fees payable under the Adhiniyam cannot be included in the turnover of purchases, has, therefore, to be upheld. Thus, it is clear that any sums that are paid prior to the delivery, or at the time of delivery, are included in the sale price, but such sums which are allowed by the seller of the goods to the purchaser, or outward freight or delivery etc. are excluded, including tax under the Act. Thus, in view of the Hon'ble Supreme Court in M/s. Anand Swarup Mahesh Kumar, the sale price shall not include the Mandi Shulk that is collected by the Nigam and deposited with the funds of the Committee. This Commercial Tax Revision is allowed.
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