The main legal point established in the judgment is that Mandi Shulk levied under Section 17(iii)(b) of the Adhiniyam falls within the definition of the expression 'sale price' as defined in Section 2(42) of the Uttarakhand VAT Act and should be treated as a part of the sale price of the goods.

JUDGMENT :

Vipin Sanghi, J.

1. This reference has been made to the Larger Bench by the Division Bench vide order dated 21.04.2023. Insofar as, it is relevant, the order of reference reads as follows :-

“4. The question of law which arises for consideration in the present revision is 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.

5. The revisionist places reliance on a judgment rendered by a Co-ordinate Bench of this Court in Commercial Tax Revision No.23 of 2013, dated 22.04.2022. The Coordinate Bench has held in Paragraph Nos.14 to 16 of the said judgment as follows:-

“14. Looking from another angle, the term ‘sale price’ has been defined under Sub-Section 42 of Section 2 of the Uttarakhand VAT Act, 2005. It reads as follows:-

(42) "Sale Price" means the amount of valuable consideration received or receivable by a dealer for sale of any goods and shall include 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 but shall not include-

(a) any sum allowed by the seller of goods to the purchaser as cash discount, commission or trade discount according to normal trade practice, at the time of sale of goods;

(b) the cost of outward freight or delivery or the cost of installation in cases where such cost is separately charged;

(c) the amount of tax under this Act, if separately charged by the dealer;

Explanation.-For the purpose of this sub-section "Sale Price" includes;-

(a) in relation to the delivery of goods on hire purchase or any other system of payment by installments, the total amount of valuable consideration including deposit or other initial payment in order to complete the purchase or the acquisition of the property in goods. It includes hire charges, interest and other charges incidental to such transaction, but does not include any sum payable as penalty or as compensation or damages for breach of agreement;

(b) in relation to transfer of the right to use any goods for any purpose (whether or not for a specified period) the valuable consideration or hire charges received or receivable for such transfer of right to use goods but does not include any sum payable as a penalty or as compensation or damages for breach of agreement;

(c) in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract, the valuable consideration paid or payable to a person for the execution of such works contract, less the actual amount representing labour and such other charges as may be prescribed, but does not include any sum payable as a penalty or as compensation or damages for breach of agreement;

(d) the amount of duties paid or payable under Central Excise Act, 1944, or Customs Act, 1962, or U.P. Excise Act, 1910, as applicable in Uttarakhand, in respect of such goods at the time of clearance of the goods from bonded warehouse, whether such duties are paid or payable by or on behalf of the seller or by any other person;

(e) the price of packing material in which goods sold are packed;

15. Thus, it is clear though specifically there is no mention that market fees will be excluded from the sale price, it is apparent that the following sums are included in the sale price:

(i) the sum charged for anything done by the dealer in respect of goods at the time or before the delivery thereof;

(ii) excise duty;

(iii) special excise duty or any other duty or tax but shall not include:

(a) any sum allowed by the seller of goods to the purchaser as cash discount, commission or trade discount according to normal trade practice, at the time of sale of goods;

(b) the cost of outward freight or delivery or the cost of installation in cases where such cost is separately charged; and

(c) the amount of tax under the Act, if separately charged by the dealer.

16. Thus, it is clear that any sums that are