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Issues: Whether mandi fee payable by the purchaser under Rule 59 of the Rajasthan Agricultural Produce Marketing Rules, 1963, but collected and reimbursed through the seller, forms part of the seller's "sale price" under Section 2(36) of the Rajasthan Value Added Tax Act, 2003, and whether tax, interest and penalty could be levied on that amount.
Analysis: The definition of "sale price" in Section 2(36) of the Rajasthan Value Added Tax Act, 2003 includes statutory levies only where the levy is part of the consideration passing from buyer to seller and is a charge by the seller in respect of the sale transaction. Rule 59 of the Rajasthan Agricultural Produce Marketing Rules, 1963 makes market fee payable by the purchaser, with the seller only acting as a mode of collection in some situations. The character of the levy does not change merely because the seller deposits it and is reimbursed. A fee payable by the buyer to the market committee for the facilities of the market cannot be treated as a levy on the seller or as part of the seller's consideration. On that basis, the revised demand of tax, interest and penalty was not sustainable, and no substantial question of law arose under Section 84 of the Rajasthan Value Added Tax Act, 2003.
Conclusion: Mandi fee paid on behalf of the purchaser and reimbursed to the seller does not form part of "sale price" under Section 2(36) of the Rajasthan Value Added Tax Act, 2003, and the revision petitions were liable to be dismissed.
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