STATE OF ANDHRA PRADESH Vs. K G SRINIVASULU

JUDGEMENT

(1.) The short but interesting question that arises in these two T.R.Cs. is whether the cess payable under the Andhra Pradesh Agricultural Produce and Live Stock Market Act by an agent or dealer forms part of the turnover so as to be assessable to sales tax.

(2.) The respondent-assessee deals in jaggery. The disputed turnover for 1983-84 represents the market cess collected by him form the purchaser on the sale of jaggery in 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 31/08/1987. 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 the assessee has collected the market cess from the purchasers it would form part of the "turnover". The expression "turnover" in the relevant assessment year read as follows :