1996 (3) TMI 38

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.... instance of the Department, the Tribunal has stated the case on application registered as R. A. No. 385/Ind. of 1991 arising out of I.T.A. No. 412/Ind. of 1989 and C. O. No. 70/Ind. of 1989 and referred the undernoted question of law for our consideration and opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that mandi fee was not a tax no....

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....d the addition of Rs. 5,978. The Department then filed the appeal before the Tribunal. The Tribunal held that it was neither a mandi tax nor a duty, but a fee and the word "fee" was inserted in section 43B(a) with effect from April 1, 1989. The Tribunal placed reliance on Srikakollu Subba Rao and Co. v. Union of India [1988] 173 ITR 708 (AP) and dismissed the appeal of the Department and allowed t....

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....1, we have taken a view that mandi tax falls outside the scope of taxes mentioned under section 43B of the Act and such a fee came to be treated as a tax only with effect from April 1, 1989, when the provisions of section 43B were amended. Following the same view, we hold that the mandi fee levied is neither a tax nor a duty under section 43B of the Act then existing at the relevant point of time.....