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2018 (9) TMI 299 - GUJARAT HIGH COURTLevy of Purchase Tax - purchases of such seeds from various farmers - the assessee had made purchases of seeds from the farmers who are unregistered dealers - Government notification dated 29.4.2006 - Did the case of the assessee fall within the determination order in case of M/s. Green India Farm Biotech or in the later order in case of M/s. King and Queen Seeds Corporation? The Deputy Commissioner however did not accept such representation of the company. He was of the opinion that essentially the company merely purchased seeds from the farmers. At that stage, seeds were possible of human consumption. It was only after the detailed process undertaken by the company that the seeds would become marketable and were actually sold by the company. - He confirmed the demand of tax with interest and penalty. - Tribunal deleted the demand. Held that:- The entire process of cultivation, cost and risk involved were on the shoulders of the farmer. The company had clearly purchased the seeds so produced by the farmer. This was therefore, clearly a case as one involved in determination order in case of M/s. Green India Farm Biotech and not akin to later determination order in case of M/s. King and Queen Seeds Corporation - the Tribunal committed a serious error. The revisional order of the Deputy Commissioner is restored.
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