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TMI Blog1969 (5) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that he had sold foodgrains worth Rs. 32,756-6-6 through commission agents but claimed that the sale proceeds could not be included in his turnover. The Sales Tax Officer rejected the contention and held him liable to tax on the ground that by including the sale proceeds of Rs. 32,756-6-6 the gross turnover of the assessee exceeded the limit of Rs. 25,000. The assessee preferred an appeal, and the appeal was allowed by the Assistant Commissioner (Judicial) Sales Tax who, following a decision of a learned single judge of this court in M/s. Lakshmi Narain Ram Narain v. Sales Tax Officer, Bareilly(1), held that the sales made by the assessee through the commission agents could not form part of the assessee's turnover. The Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that if the turnover of foodgrains of a dealer does not exceed Rs. 25,000 during the assessment year he will not be liable to tax on that turnover. The case of the assessee is that in the computation of the gross turnover sales made through a commission agent must be excluded. Now, section 3 itself does not make any distinction between gross turnover and net turnover. That distinction is drawn by the U.P. Sales Tax Rules. Rule 8 provides that a dealer's liability to pay tax under the Act shall be determined on the basis of his gross turnover. In other words, for the purpose of determining whether section 3 is attracted in the case of any dealer his gross turnover must be taken into consideration. Rule 44 lays down that the tax under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax liability over which section 3 operates. In other words, where tax is payable and has been so paid by the commission agent on any turnover on behalf of his principal, then such turnover cannot be treated as part of the turnover of the principal for the purposes of section 3. Such turnover will fall outside the scheme of section 3 altogether. A feature of that scheme is that a dealer will not be liable under section 3 if his turnover is less than the prescribed minimum. Therefore, when computing the gross turnover of the assessee for the purposes of the first proviso to section 3 the turnover on which tax is payable and has been paid by the commission agent on behalf of his principal must be excluded. Reference may also be made to the def ..... X X X X Extracts X X X X X X X X Extracts X X X X
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