State Of Punjab And Ors vs Chhabra Rice Mills And Ors

The Supreme Court held that under the Punjab General Sales Tax Act, 1948, market fee does not form part of the turnover for the purpose of purchase tax assessment. The Court interpreted 'turnover' as defined in Section 2(i) of the Act, concluding that since the market fee is the buyer's obligation and not the seller's, it cannot be included in the sale consideration. The appeal against the High Court's ruling was dismissed, affirming that there is no liability to pay sales tax on the market fee element.