Market fee excluded from turnover for purchase tax where liability rested on the buyer, not the seller.

The buyer's market fee was not includible in turnover for purchase tax under the Punjab General Sales Tax Act because the statutory and regulatory scheme placed the legal obligation to pay that fee on the buyer, not the seller. The seller merely collected and deposited the fee on the buyer's behalf and had no independent liability to pay it, so the amount could not form part of sale consideration or turnover for assessment purposes. The Court applied the earlier governing principle on when market fee enters turnover and found the High Court had correctly applied that rule to the Punjab enactment.

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Issues: Whether the element of market fee payable by the buyer could be included in turnover so as to attract purchase tax under the Punjab General Sales Tax Act.

Analysis: The Court noted that, on the statutory scheme and the marketing regulations, the legal obligation to pay the market fee was on the buyer, while the seller's role was only to realise and deposit the fee on behalf of the buyer. Since the seller was under no independent obligation to pay the market fee, that amount could not be treated as part of the sale consideration or as part of turnover for assessment of purchase tax. The Court also reiterated the governing principle earlier explained in the precedent on when market fee can enter into turnover, and held that the High Court had correctly applied that principle on the Punjab enactment.

Conclusion: The element of market fee was not includible in turnover for purchase tax purposes, and the appeals failed.

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