9911796707
TMI Blog1996 (6) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... n the market yards. The assessing authority included in the turnover "the market cess" and that view was affirmed by the appellate authority. In the second appeal filed by the assessee before the Tribunal it was contended that the market cess was included in the bills, therefore it would fall within the definition of the "turnover". The Tribunal rejected that contention and held that the market cess collected by the appellant was not consideration for transfer of property and could not be treated as part of "turnover" and accordingly allowed the appeal of the respondent-assessee on August 31, 1987. It is the correctness of that order that is assailed in these T.R.Cs. 3.. The learned Special Government Pleader for Taxes contends that as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al relied upon the judgment of the Supreme Court in Anand Swarup Mahesh Kumar v. Commissioner of Sales Tax [1980] 46 STC 477 to come to the conclusion that the market cess does not become part of the "turnover". 5.. The learned Special Government Pleader for Taxes submits that that judgment is distinguished in Hyderabad Industries v. State of Andhra Pradesh (1987) 4 APSTJ 103 and the Supreme Court laid down the principle in the following terms: "It has been found that the insurance charges were claimed in the bills of sale that being the position under clause (i), the amount becomes a part of the turnover and it is not necessary to rely upon III(c) of the definition to bring the insurance charges within the meaning of the definition tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the facts of this case the Tribunal had recorded a finding that the market cess was not collected by the dealer/agent as part of the consideration either by virtue of any agreement between them and the purchaser and that the purchaser was under a statutory obligation to pay market cess for making purchases of agricultural produce in the market area and that the dealer collected the market cess payable by the purchaser for and on behalf of the market committee as its agent as provided under rule 74(4) of the Rules. In view of the above finding the essential requisite of the test, viz., the tax should have been included as consideration and passed on to the purchaser, is not satisfied. That being so the market cess cannot be treated as pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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