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1989 (12) TMI 326 - HC - VAT and Sales Tax
Issues:
Whether the assessee, an agriculturist selling surplus agricultural produce, qualifies as a 'dealer' under the Bihar Sales Tax Act, 1959. Detailed Analysis: Issue 1: Definition of 'Dealer' under the Bihar Sales Tax Act, 1959 The main issue in this case is whether the assessee, an agriculturist selling surplus agricultural produce, can be classified as a 'dealer' under the Bihar Sales Tax Act, 1959. The definition of 'dealer' under section 2(f) of the Act includes any person who sells or purchases goods. The key contention raised by the assessee's counsel was that the sales in question were casual transactions and not part of a business activity, thus exempting the assessee from being classified as a dealer. On the other hand, the Revenue argued that the regularity of the sales made the assessee a dealer under the Act. Issue 2: Precedents and Interpretation of the Law The case referred to a previous decision under the Bihar Sales Tax Act, 1944, where it was held that mere sale of surplus agricultural produce by an agriculturist did not make them a dealer. However, subsequent amendments to the law broadened the definition of 'dealer.' The Revenue relied on a Supreme Court decision in the case of Motipur Zamindary Co. (Private) Ltd., where it was established that an agriculturist selling agricultural produce could be classified as a dealer under the amended law. The court noted that the absence of the expression "carries on business" in the amended definition of 'dealer' was crucial in determining the assessee's classification. Conclusion The court, after considering the arguments and precedents, ruled in favor of the Revenue, holding that the assessee qualified as a 'dealer' under the Bihar Sales Tax Act, 1959. The court's decision was based on the interpretation of the definition of 'dealer' under the Act and the regularity of the sales made by the assessee. The judgment emphasized the broad scope of the definition of 'dealer' and its applicability to individuals engaged in selling goods, including surplus agricultural produce.
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