Mandi Shulk under Section 17(iii)(b) held part of sale price under Section 2(42) Uttarakhand VAT Act

HC held that Mandi Shulk/fees levied under Section 17(iii)(b) of the Adhiniyam is included in the "sale price" under Section 2(42) of the Uttarakhand VAT Act. The definition of sale price is broad and covers any duty or tax, including Mandi Shulk, which the dealer is statutorily entitled to recover from the purchaser. The HC distinguished earlier SC authority based on different statutory definitions and approved the reasoning of a prior HC single-judge decision. Concluding that Mandi Shulk forms part of the taxable turnover, the HC found no infirmity in the Commercial Tax Tribunal's decision and dismissed the revision.

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Issues Involved:
1. Whether Mandi Fees charged by the Mandi could be treated as a part of sale price under Section 2(42) of the Uttarakhand Value Added Tax Act.
2. Interpretation of the definition of 'sale price' under Section 2(42) of the Uttarakhand VAT Act in comparison to the U.P. Sales Tax Act.

Summary:

Issue 1: Mandi Fees as Part of Sale Price
The primary issue for consideration is whether Mandi Fees charged by the Mandi can be treated as a part of the sale price under Section 2(42) of the Uttarakhand Value Added Tax Act. The revisionist relied on a previous judgment by a Co-ordinate Bench, which concluded that the sale price shall not include Mandi Shulk collected by the Nigam and deposited with the funds of the Committee. However, the court in this case found no justification for this exclusion, noting that the definition of 'sale price' in Section 2(42) includes any other duty or tax, which would encompass Mandi Shulk.

Issue 2: Interpretation of 'Sale Price'
The revisionist cited the Supreme Court's judgment in M/s Anand Swarup Mahesh Kumar, which dealt with the U.P. Sales Tax Act and concluded that market fees could not be included in the turnover of purchases. However, the court noted that the definition of 'sale price' in the Uttarakhand VAT Act is broader, including any sum charged for anything done by the dealer in respect of goods at the time or before the delivery thereof, excise duty, special excise duty, or any other duty or tax.

Comparison with U.P. Sales Tax Act:
The court observed that the definition of 'purchase price' in Section 2(gg) of the U.P. Sales Tax Act is narrower compared to the definition of 'sale price' in Section 2(42) of the Uttarakhand VAT Act. The court emphasized that the expression 'any other duty or tax' in the Uttarakhand VAT Act is broad enough to include Mandi Shulk. The court held that the decision of the Division Bench in CTR No.23 of 2013, which excluded Mandi Shulk from the sale price, was incorrect and overruled it, affirming the Single Judge's decision in M/s Ashok Kumar.

Conclusion:
The court concluded that Mandi Shulk levied under Section 17(iii)(b) of the Adhiniyam falls within the definition of 'sale price' under Section 2(42) of the Uttarakhand VAT Act and should be treated as part of the sale price of goods. Consequently, the court upheld the impugned judgment of the Commercial Tax Tribunal and dismissed the revisions.

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