Entry tax valuation excludes transportation charges from market value unless the statute expressly provides otherwise.

For entry tax valuation, the assessable market value or sale price of bauxite brought into a local area does not include transportation charges unless the statute expressly permits their inclusion. The dispute concerned bauxite extracted from the assessee's own quarries and transported to Korba for use in its plant, but the valuation question was treated as covered by an earlier decision between the same parties. The legal principle applied was that transport costs are excluded from the taxable value for entry tax purposes. The issue was answered in favour of the assessee and against the Revenue.

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Issues: Whether, for the purpose of entry tax, the market value or sale price of bauxite brought into the local area could include transportation charges.

Analysis: The reference arose from assessment of entry tax on bauxite extracted by the assessee from its own quarries and brought to Korba for use in its plant. The dispute centred on the correct market value at Korba, specifically whether transport charges formed part of the taxable value. The question was treated as covered by an earlier decision between the same parties, where it was held that transportation charges are not includible in the entry tax valuation.

Conclusion: The market value for entry tax could not include transportation charges, and the question was answered in favour of the assessee and against the Revenue.

Ratio Decidendi: For entry tax valuation, transportation charges are to be excluded from the assessable market value or sale price unless the statute expressly permits their inclusion.

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