2004 (11) TMI 543 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the definition of "dealer" under section 2(c) of the U.P. Trade Tax Act, 1948.

Analysis:
The case involved five revisions under section 11 of the U.P. Trade Tax Act, challenging the Tribunal's order related to assessment years 1985-86 to 1989-90. The dealer in question acted as a handling agent for coal purchases by small-scale industries. The assessing authority treated the dealer as a "dealer" under section 2(c) of the Act and levied tax on the estimated turnover of coal. The Tribunal, however, allowed the second appeals filed by the dealer, leading to the present challenge.

The definition of "dealer" under section 2(c) includes various categories of persons involved in buying, selling, supplying, or distributing goods. To be considered a dealer, a person must carry on the business of such activities. Business is defined under section 2(aa) as any trade, commerce, manufacture, or similar activities involving goods. However, the definition of business excludes activities that do not involve the purchase or sale of goods, such as mere services or professions.

In this case, the dealer only acted as an agent for small-scale industries, facilitating the movement and loading supervision of coal. The dealer did not engage in buying or selling goods, as the transactions involved were purely service-oriented. No sale consideration was received, and no transfer of title in goods occurred between the dealer, Coal India Ltd., and the consumers. Therefore, the dealer did not meet the criteria to be considered a "dealer" under section 2(c) of the Act.

The Tribunal correctly determined that the dealer was not liable to tax under the U.P. Trade Tax Act for the transactions in question. As a result, all five revisions challenging the Tribunal's order were dismissed.