Arijit Pasayat, J. - (1.) The only question raised for consideration in this appeal is whether purchase tax can be charged on the element of market fee on the basis that the same does not form part of the turnover. Writ Petition filed by the respondent was allowed by the High Court and this appeal has been filed by special leave.
(2.) Under the Punjab General Sales Tax Act, 1948 (in short the Act) turnover is defined in Section 2(i) to include: "the aggregate of the amounts of sales and purchases and parts of sales and purchases actually made by any dealer during the given period, less any sum allowed as cash discount and trade discount according to ordinary trade practice, but including any sum charged for anything done by the dealer in respect of the goods at the time of, or before, delivery thereof.
(3.) Interpreting this provision with reference to the Marketing Regulations, under Punjab Agricultural Produce Markets Act, 1961 (in short Markets Act) the High Court noticed that the incidence of tax in the present cases is when the turnover exceeds the taxable quantum, the buyer has to pay market fee as the writ petitioners are licensees within the market area; that such market fee is not paid by them to the sellers; that, therefore, such amount of the market fee cannot be part of the sale consideration; that the writ petitioners were not required to show in their turnover the amount of the market fee as part of the purchase price of such of the agricultural produce purchased by them locally, that such market fee is not to form part of the turnover for assessment or payment of purchase tax.;