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TMI Blog1970 (2) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ealer in food-grains, oil-seeds and gur. In respect of assessment years 1960-61 and 1961-62 it filed returns of its turnover show- ing gross sales of Rs. 4,368 and Rs. 3,773 for the two years respectively. These figures were not accepted by the Sales Tax Officer and were enhanced to Rs. 6,583 and Rs. 10,383 f or the two years respectively. Even the enhanced figures of sales are below the minimum taxable limit which is Rs. 12,000 per year. The assessee would, therefore, have not been liable to any tax. The assessee, however, had made certain sales through commission agents and the extent of such sales was Rs. 24,000 for the year 1960-61 and Rs. 21,000 for the year 1961-62. If the sales made through the commission agents are also added to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the commission agent both become dealers so that tax can be levied on either of them. At the end of section 3, however, there is an explanation which says that where tax, is payable and has been so paid by the commission agent on any turnover on behalf of his principal, the principal shall not be liable to pay the tax in respect of the same turnover. This means that if a particular turnover has been assessed in the hands of the commission agent, the principal ceases to be liable to tax on such turnover. In other words, a principal is granted exemption from tax where his turnover is assessed in the hands of the com- mission agent. Rule 8 of the Rules framed under the Act is headed "liability to pay tax" and provides "a dealer's liability to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Sales Tax, U.P. v. Allied Chemicals[1969] 23 S.T.C. 165; 1969 A.L.J. 33 (F.B.). , a Full Bench of this court, of which one of us (Gulati, J.) was a member, held that the sales effected by a dealer outside the State of Uttar Pradesh could not be included in the assessee's gross turnover because of the provisions contained in section 27 of the Act. Section 27 before it was repealed pro- vided that notwithstanding anything contained in the Act, a tax on the sale or purchase of goods shall not be imposed where such sale or purchase takes place outside the State of Uttar Pradesh. This provision had been enacted to give effect to the provisions of article 286 of the Constitution which prohibits a State from levy of tax on inter-State trade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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