Entry tax valuation through arhitya excludes sales tax and other taxes from market value when purchase price is taken from actual payment.

For entry tax on goods purchased through an arhitya, market value is to be determined by reference to the price actually paid by the arhitya where the purchase price is not otherwise known. Expenses referable to the transaction are excluded from that value, so sales tax and other taxes could not be included in the assessable market value. The question was answered in favour of the assessee and against the department.

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Issues: Whether, for assessment of entry tax on goods purchased through an arhitya, the market value was to be taken as the price paid to the farmers together with the commission charged by the arhitya, excluding sales tax and other taxes.

Analysis: The Court applied the principle that where goods are sold on adhat and the purchase price is not known, market value for entry tax purposes is to be determined by reference to the price actually paid by the arhitya, after excluding expenses referable to the transaction. On that reasoning, sales tax and other taxes could not form part of the market value for entry tax assessment.

Conclusion: The question was answered in the affirmative in favour of the assessee and against the department.

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