K.M. Agarwal, J.
1. This is a reference under Section 13 of the M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (for short, the "Entry Tax Act"), read with Section 44(1) of the M.P. General Sales Tax Act, 1958, at the instance of the department. The Tribunal has referred to this Court the following question of law for its decision :
"Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that the market value for the purpose of assessment of entry tax on the arhitya would be the price paid to the farmers together with the commission charged by the arhitya and that sales tax, and other taxes would be excluded."
2. During the assessment period 22nd October, 1979 to 7th November, 1980, the assessee Sagarmal Motilal of Jaora purchased certain commodities as arhitya on behalf of its principals. It was subjected to entry tax on these purchases on the basis of market price of the commodities, inclusive of mandi fees, sales tax and entry tax, etc. The contention of the assessee that it was liable to pay entry tax on the basis of the price paid to the cultivators together with its commission was rejected. In first appeal, the assessment was upheld by the Appellate Deputy Commissioner of Sales Tax. In second appeal, the Tribunal upheld the contention of the assessee and accordingly directed the assessment of entry tax on the basis of price paid to the cultivators together with the commission of the assessee. Aggrieved by the order of the Tribunal, the department applied for a reference. Accordingly the aforesaid question of law has been referred to us by the Tribunal for our decision.
3. In Commissioner of Sales Tax, M.P. v. Samriti Trading Corporation, Indore (1986) 19 VKN 136, this Court had to consider the question whether the Tribunal was justified in deducting expenses referable to the transaction from the sale price for ascertaining taxable market value of goods liable to entry tax and it was held that in a case where the goods are sold on adhat and the purchase price is not known, the market value can be determined only by deducting from the sale price expenses including commission referable to the sale. On the same principle we are of the view that the market value of the goods liable to entry tax would be the price paid by the arhitya and such market value would not include the sales tax and the other taxes to which such goods may or might be liable. Accordingly the aforesaid question of law is answered in favour of the assessee and against the department.
4. In the circumstances of the case, we make no order as to costs of this reference.