Sale price under VAT law includes market fee charged as Mandi Shulk, making it part of taxable turnover.

Under the Uttarakhand Value Added Tax Act, 2005, market fee (Mandi Shulk) realised by a commission agent in sales or purchases of agricultural produce is included in "sale price". The statutory definition in Section 2(42) was read to cover not only the dealer's consideration but also sums charged in the nature of duty or shulk, subject only to express exclusions. The Court treated the Hindi text as consistent with the English expression "any other duty" and held that market fee falls within that inclusive wording. It also noted that a fee may have the character of tax when imposed to raise general revenue, and the circular was upheld as reflecting the statute.

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Issues: Whether market fee (Mandi Shulk) realised by a commission agent in transactions of sale or purchase of agricultural produce forms part of "sale price" under the Uttarakhand Value Added Tax Act, 2005.

Analysis: The definition of "sale price" under Section 2(42) of the Act was read to include not only the consideration received by the dealer but also sums charged in the nature of duty or shulk, while excluding only the items specifically carved out by the statute. The Court found no conflict between the English expression "any other duty" and the Hindi expression used in the statutory text, and held that the latter clearly covered market fee. It further noted that a fee may assume the character of tax where it is imposed to augment general revenue rather than to compensate for services, and that the impugned circular merely reflected this statutory inclusion. The authority relied upon by the petitioner on exclusion of market fee from turnover was distinguished on the footing that the present controversy turned on the statutory definition of "sale price".

Conclusion: Market fee (Mandi Shulk) realised by the commission agent is included in "sale price" and is liable to be taken into account for levy of tax under the Act.

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