TaxTMI 
TaxTMI 
TaxTMI 
2017 (5) TMI 174
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.... as to whether the amount of Entry Tax, noticed above, would constitute part of the 'sale price' and thereby included in turnover of sales for the purposes of payment of tax under the U.P. VAT Act. According to the revisionist, this amount of Entry Tax was apparently collected from the purchaser and was clearly reflected in the sale invoice and thus was not liable to be included, but this aspect has not been taken into consideration. The plea raised by the assessee in that regard has been rejected by the authorities under the U.P. VAT Act and also by the Tribunal, which has given rise to filing of present revision. 3. Learned counsel for the revisionist places reliance upon judgment of the Apex Court in M/s Anand Swarup Mahesh Kumar vs. Commissioner of Sales Tax, (1980) 4 SCC 451, as well as a recent decision of the Apex Court in Asian Paints (India) Ltd. vs. State of Karnataka and others, (2016) 61 NTN DX 159. Learned counsel submits that since amount of Entry Tax has been passed on to the purchaser, as such, the amount is not liable to be included in the turnover of sales. 4. Learned Standing Counsel, on the other hand, has invited attention of the Court to amended prov....
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....a dealer who in this case happens to be a commission agent is permitted by law to collect the market fee which he is liable to pay to the market committee from the purchaser, such market fee cannot form part of the consideration for sale and, therefore, cannot be included in the turnover of purchases for purposes of levy of tax under the Act. But on behalf of the State Government, it is urged that all sums paid by a purchaser to a seller or to a commission agent for the purchase of the goods including any tax or fee payable by him form the consideration for the purchase and, therefore, are liable to be included in the turnover of purchases. Reliance is placed by the State Government on M/s. George Oakes (P) Ltd. v. State of Madras' in which this Court while interpreting a similar provision in the Madras General Sales Tax Act, 1939 observed that the expression 'turnover' meant the aggregate amount for which goods were bought or sold whether for cash or deferred payment or other valuable consideration and when a sale attracted purchase tax and the tax was passed on to the consumer what the buyer had to pay for the goods included the tax as well and the aggregate amount ....
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....quor was liable to pay under Section 21A of the Madras Prohibition Act, 1937 did not form part of the turnover on which sales tax could be levied under the Madras General Sales Tax Act, 1959 because the seller was entitled to recover the sales tax payable by him from the purchaser. The relevant part of Section 21-A of the Madras Prohibition Act, 1937 referred to above read thus: 21-A. Every person or institution which sells foreign liquor - shall collect from the purchaser and pay over to the government at such intervals and in such manner as may be prescribed, a sales tax calculated at the rate of eight annas in the rupee, or at such other rate as may be notified by the government from time to time, on the price of the liquor so sold." The High Court has, in the impugned judgment, in fact accepted the aforesaid principle. However, on the construction of Section 3A of the KTEG Act, it has taken a view that since this section is couched in a negative term, it does not authorise the registered dealer to collect the entry tax. This construction is clearly erroneous as the embargo is put only on such dealers which are not registered dealers, meaning thereby, those who are registered....
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.... collect the entry tax and such an entry tax cannot be treated as forming part of the turnover." 7. The provisions under the Karnataka Tax on Entry of Goods Act permits the amount of entry tax to be passed on to the purchaser. There is no corresponding provision in the U.P. Tax on Entry of Goods into Local Areas Act. Section 4(1) of the Act of 2007 reads as under:- "4(1). For the purposes of development of trade, commerce and industry in this State, there shall be levied and collected a tax on entry of goods specified in the Schedule into a local area for consumption, use or sale therein, from any place outside that local area, at such rate not exceeding five percent of the value of the goods as may be specified by the State Government by, notification and different rates may be specified in respect of different goods or different classes of goods; Provided that the State Government may by notification amend the Schedule and upon issue of any such notification, the Schedule shall, subject to the provisions of sub-section (10), be deemed to be amended accordingly." 8. There is no provision under the Act which permits the dealer to collect tax from the purchaser, and therefore,....