ANAND SWARUP MAHESH KUMAR vs THE COMMISSIONER OF SALES TAX

The Supreme Court ruled that market fees payable under the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 cannot be included in the turnover of purchases for sales tax assessment under Section 3D of the U.P. Sales Tax Act, 1948. The Court clarified that commission (dami) paid to commission agents is not a tax or fee but a reward for services rendered and should be included in the turnover. The Court held that the Assessing Authority's inclusion of both market fees and commission in the turnover was incorrect, thereby allowing the appeal.