Reserved Judgment

IN THE HIGH COURT OF UTTARAKHAND

AT NAINITAL

HON’BLE THE CHIEF JUSTICE SRI VIPIN SANGHI

HON’BLE SRI JUSTICE MANOJ KUMAR TIWARI

AND

HON’BLE SRI JUSTICE RAVINDRA MAITHANI

COMMERCIAL TAX REVISION NO. 44 OF 2022

BETWEEN:

Prabhagiya

Vipnan

Prabandhak

Uttarakhand

Forest

Development Ramnagar

…..Revisionist.

And

Commissioner Commercial Tax Uttarakhand, Dehradun

….Respondent.

With

COMMERCIAL TAX REVISION NO. 23 OF 2013

(DECIDED REVISION)

BETWEEN:

Prabhagiya Vipnan Prabandhak Uttarakhand Van Vikas Nigam

…..Revisionist.

And

Commissioner Commercial Tax Uttarakhand, Dehradun

….Respondent.

With

COMMERCIAL TAX REVISION NO. 45 OF 2022

BETWEEN:

Prabhagiya Vipnan Prabandhak Uttarakhand …..Revisionist.

And

Commissioner Commercial Tax Uttarakhand, Dehradun

….Respondent.

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Presence:

Mr. V.K. Kaparuwan, learned counsel for the revisionist.

Mr. J.P. Joshi, learned Additional Advocate General assisted by Mr. Mohit Maulekhi and

Ms. Puja Banga, learned Brief Holders for the State- respondent.

Judgment Reserved on: 14.06.2023

Judgment Delivered on: 11.07.2023

The Court made the following:

COMMON JUDGMENT:(per Hon’ble The Chief Justice Sri Vipin Sanghi)

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 Co-

ordinate 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;

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(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 char