Mandi fee (mandi shulk) charged to buyers and passed on by dealers-does it count in "sale price" u/s2(42)? Referred.

Whether mandi fee (mandi shulk) forms part of "sale price" under s.2(42) of the Uttarakhand VAT Act turned on whether it is collected by the dealer from the purchaser as consideration for sale. The HC noted that the mandi shulk is collected by the dealer and passed on as part of the amount recovered from the purchaser, and that the earlier DB had noticed the statutory provision but excluded mandi shulk merely because it was collected for, and deposited into, the market committee fund, without adequate justification. The HC referred the earlier DB ruling for fresh consideration by a larger Bench.

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1. ISSUES PRESENTED AND CONSIDERED

(i) Whether the delay of 93 days in filing the revision should be condoned on the grounds stated.

(ii) Whether the earlier view that Mandi shulk/market fee is not includible in "sale price" under Section 2(42) of the Uttarakhand Value Added Tax Act requires reconsideration, warranting reference to a larger Bench.

2. ISSUE-WISE DETAILED ANALYSIS

Issue (i): Condonation of delay of 93 days

Legal framework: The Court considered the condonation request in light of the length of delay and whether a determinative question arises for adjudication.

Interpretation and reasoning: The Court noted that the delay was only 93 days and that the revision raised a question requiring determination by the Court. These factors were treated as sufficient to exercise discretion in favour of condonation.

Conclusion: Delay of 93 days in preferring the revision was condoned and the application was allowed.

Issue (ii): Whether the prior view on exclusion of Mandi shulk from "sale price" requires reconsideration and reference to a larger Bench

Legal framework: The Court examined the definition of "sale price" in Section 2(42) of the Uttarakhand Value Added Tax Act as it bears on inclusion of amounts in sale consideration, including "excise duty, special excise duty or any other duty or tax."

Interpretation and reasoning: The Court observed that Section 2(42) defines "sale price" as the valuable consideration received/receivable for sale of goods and expressly includes specified statutory imposts, extending to "any other duty or tax." On this basis, the Court formed a prima facie view that Mandi shulk collected in connection with the sale and passed on to the purchaser operates as part of the sale price. The Court further noted that the earlier decision had noticed the statutory language but nonetheless concluded that Mandi shulk collected and deposited with the committee fund should be excluded, for which the present Court found "no justification" in light of Section 2(42).

Conclusion: Without finally deciding the substantive taxability question, the Court held that the earlier decision requires reconsideration and accordingly referred that decision for fresh consideration to a larger Bench.

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