9911796707
TMI Blog1974 (8) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... October, 1965, to 12th November, 1966. During the said period, the respondent-assessee acted as the agent of the Government in procuring foodgrains and distributing the same. The assessing authority in the assessment order stated that the assessee was acting as procuring and distributing agent in jawar, paddy and other foodgrains and food products on behalf of the Government of Mysore, but relying on the circular issued by the Commissioner of Commercial Taxes, dated 7th February, 1967, which granted exemption only in respect of sales made after 1st January, 1967, held that the turnover during the relevant period was not exempt. A sum of Rs. 18,861.66 was assessed as the tax payable by the assessee. That order of the Commercial Tax Officer w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 5(1) of the Act. The levy of sales tax on sale of foodgrains is made by sub-section (1) of section 5 of the Act, which states thus: "Every dealer shall pay for each year tax on his taxable turnover at the rate of three per cent of such turnover: Provided that if and to the extent to which such turnover relates to gur, pulses including their dhals, flour and husks, wheat (including atta, maida, soji and bran), bread, paddy, rice (including parched rice and beaten rice and bran), ragi, jola. maize, bajra, navane, samey, and gunny bags, bardans (including batar) and hessian cloth, the tax shall be calculated at the rate of one and a half per cent of such turnover." In order to attract the levy under the charging section, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collects any amount by way of tax, it is not levying sales tax; it is collecting, in addition to the sale price, ail amount which a registered dealer effecting such sale would have been entitled to collect. In view of section 19, there can be no doubt that the State Government is not a "dealer" under the Act. The distribution of foodgrains is also not done by any undertaking of the State Government. Therefore, when the State Government is not liable to tax under section 5(1), its agent cannot be made liable since the liability of the agent is coextensive with that of his principal. The view taken by the Tribunal that the respondent is not liable to pay tax for the relevant period is therefore right. Accordingly, this revision petition f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
