Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 660 - MADRAS HIGH COURTScope of taxable turnover - whether the market fee or cess which is paid by the petitioner is in the nature of compensation for the special services rendered by the market committee and there must be quid pro quo for the services rendered by the Government or local body and such pre-expenses levied in rendering service by the market committee forms part of the taxable turnover for the purpose of levying tax and as such expenses are liable to be deducted from the total turn over? - Madras Sugar Factories Control Act, 1949 - Held that: - the nature and incidence of cess was not intended to form part of the consideration for the purchase of sugar by the assessee therein. The said principle could very well be applied to the case on hand, since the petitioner had paid the fee or cess to the regulated market committee which renders certain services to the seller and the purchaser. In other words, the market committee acts as a facilitator for which a fee is collected - fee/cess paid by the petitioner to the market committee cannot form part of the taxable turn over nor made liable to tax - petition allowed - decided in favor of petitioner.
|