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TMI Blog1960 (11) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and circumstances of the case, the sale of agricultural produce grown by the agriculturist-members of the assessee is liable to be included in the assessee's turnover?" The relevant assessment years are 1962-63 and 1963-64. In these years, the assessee carried on some business of its own. The assessee has paid tax on the turnover of its business. The dispute in the reference is in respect of the turnover of sale of agricultural produce belonging to the members of the assessee. The case of the assessee before the sales tax authorities was that it was not a dealer in respect of those sales. It contended that it was a mere taula (weigh-man). The assessing authority did not accept this case. He found that it was acting as a com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the rates with the buyers and with the consent of the sellers the goods were weighed by the palledar employed by the society. It issued parcha kashtkar to the sellers and parchalewal to the buyers. It paid the prices of the goods of the sellers. Admittedly, the buyers generally paid the price after a few days. In case the goods were not sold on the same date they were also stocked. In my opinion, the above ingredients were quite sufficient to hold the appellant to be a dealer under the amended definition of section 2(c) of the Act..........." The revising authority said this: "Regarding the other argument it would suffice to say that after amendment of the definition of 'dealer' in 1961 to include even persons 'through' whom sales tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d incorporate in the supplementary statement of the case primary facts which would show whether the assessee had the authority to conclude the bargain on behalf of the sellers or on behalf of both buyers and sellers. The revising authority has now submitted a supplementary statement of the case. In the supplementary statement of the case, the revising authority has quoted a passage from the statement of Sri R.S. Verma, Secretary of the assessee, who was examined before the assessing authority. The material portion from the passage is set out here: "Commission pranalli par jo bikri ki gai us ke kashtkar se Rs. 1-9-0 saikara commission liya. Iske alawa palledari, chungi, dharmada liya. Lewal ko dharmada kharcha dana para. Ussey kuch milta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee falls within the explanation to section 2(c) of the U.P. Sales Tax Act, for it sells the goods of its agriculturist-members on the strength of the authority given to it by the principal to conclude the bargain on his behalf. Coming to the second question, the argument of Sri Raja Ram Agrawal is that on the principle of identification of the agent with the principal, the turnover of sale of agricultural produce grown by the agriculturist-members of the assessee should be excluded from the assessee's turnover. The principle on which Sri Raja Ram Agrawal relies is not an inflexible rule. It has got certain exceptions. Sometime an exception is created by statute. So in each case, it is necessary to examine the material provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. It was grown by the members of the assessee. So the first part of the proviso is not applicable to the assessee. It cannot get the benefit of the second part of the proviso. It is neither an owner nor usufructuary mortgagee nor tenant of the land on which the sold agricultural produce was grown. This much is admitted. But it is submitted that this case is covered by the word "otherwise" in the second part of the proviso. We think that the word "otherwise" should be construed as ejusdem generis with the preceding words "owner", "usufructuary mortgagee" and "tenant". In order to fall within the word "otherwise" the seller should have some possessory interest in the land, though the interest may fall short of that of an owner, usufru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Commercial Tax Officer, 1st Circle, Hyderabad, and Another' makes the same general observation. The earlier decision of the Madras High Court in The State of Madras v. Tiruchengode Co-operative Marketing Society Ltd.[1965] 16 S.T.C. 760. was not placed before the learned Judges. In the said decision, another Division Bench of the of the Madras High Court said: "An agent with dominion over the goods of the principal and with authority to transfer the property in such goods and consequently effect sales and acquire a turnover in respect of such transactions cannot be treated on the same footing as the agent of a non-resident principal assessed under section 14A. The turnover acquired by the agent in the circumstances mentioned above is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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