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TMI Blog1982 (12) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh Forest Act are also made applicable in certain respects. The entire State is divided into various units for this purpose, and agents are appointed by the Government for collecting the leaves, and bringing them to the several points specified in each unit. Simultaneously with the appointment of agents, tenders are called for, for purchase of the abnus leaves so collected in each unit. The purchasers have to take delivery of the abnus leaves from the collection-depots. From the collection-depots the abnus leaves are transported to approved godowns. Of course, the purchasers are entitled to remove the abnus leaves straight from the collection-point also, in case they pay the requisite amount. This is the broad scheme, and we shall refer to the particular clauses in the agreement, presently. So far as the first point urged by Mr. P. Venkatarama Reddy is concerned, he fairly conceded that, in view of the decision of the Supreme Court in State of M.P. v. Orient Paper Mills Ltd. [1977] 40 STC 603 (SC) his contention is of no avail. It is, therefore, not necessary for us to deal with this contention at any length. Mr. Venkatarama Reddy, however, strongly pressed his sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) says "the purchaser shall pay sale amount at the tendered rate, namely Rs......... ...... per standard bag for the quantity of abnus leaf purchased/collected by the agent and delivered to him up to number of bags specified against the unit in the tender notice...........". Sub-clause (2) provides that, for the number of bags over and above the number specified against the unit in the tender notice, the purchaser shall be entitled to pay the tendered rate minus 25 per cent of the royalty component thereof. Sub-clause (3) says "the royalty component of the tendered rate shall be arrived at by deducting the cost of collection fixed for the Government lands for the unit, handling, pruning and remuneration charges to be paid to the agent from the tendered rate." Sub-clause (4) says that the sale amount mentioned in the various sub-clauses of clause (B) shall be exclusive of sales tax. Clause (D), sub-clause (1), says "on payment of the sale amount as specified in clause (K) below, the purchaser shall take delivery of abnus leaves at the collection-depot or at such other places mentioned in the Second Schedule ............". For this purpose, the purchaser is obliged to keep a represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the purchaser shall be paid by the purchaser in three equal monthly instalments as follows: ------------------------------------------------------------------------------ Instalment Due Date First instalment ... 15th October, 1975. Second instalment ... 15th November, 1975. Third instalment ... 15th December, 1975. ------------------------------------------------------------------------------ (iv) Each time the purchaser makes the payment of the instalment detailed above, he would usually become entitled to 1/3rd of the quantity of the leaves kept in the godowns under the provisions of this condition. However, on payment of the instalments, it shall be open to the Divisional Forest Officer to release a quantity less than 1/3rd of the quantity kept in the godown, taking the prevailing market value of abnus leaves into consideration. (v) If a purchaser desires to remove any quantity of abnus leaves before the due date of an instalment mentioned in sub-clause (2)(b)(iii) above, the Divisional Forest Officer may permit such removals on payment of the sale amount pertaining to that quantity or such higher amount as the Divisional Forest Officer may decide. However, such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement. The agreement expressly says that the purchase amount comprises of both royalty and collection charges. In fact, the agreement, at more than one place, uses the expression "royalty component". The expressions "tendered rate", "sale amount " and "purchase amount" are used interchangeably. Admittedly, both royalty, as well as the collection charges are paid to the Government. The mere fact that these two amounts are paid on separate occasions, cannot make any difference to the fact that they together constitute the "purchase amount", of the "sale amount", as it is referred to. The collection charges have to be paid to the Range Officer before removing the abnus leaves from the collection-depots, while the royalty has to be paid in the manner prescribed in clause (K)(1) and clause (K)(2)(b)(iii), i.e., 10 per cent has to be paid before the commencement of the actual collection, and the remaining amount in three instalments. We may also, in this connection, refer to the definition of "turnover" in section 2(1)(s) of the Andhra Pradesh General Sales Tax Act. In so far as it is relevant it reads: "'Turnover' means the total amount set out in the bill of sale (or if there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ser to enquire as to how the sale price, or the purchase price is made up, and what are its components. It is equally immaterial from the point of view of the purchaser, whether the collection charges are paid over to the agent, or whether they are retained by the Government. So far as the purchaser is concerned, he pays the collection charges as well to the Government. For these reasons, it must be held that the collection charges form part of the purchase amount, and have been rightly included in the turnover of the assessees. Mr. Venkatarama Reddy relied upon the decision in Board of Revenue v. A.M. Ansari [1976] 38 STC 577 (SC) in support of his contention, but we find that this decision is of no assistance to him. The question which the Supreme Court considered in the said case, was whether the document executed between the parties thereto was a lease or a licence. We are unable to see any relevance between the principle of that decision, and the principle involved herein. Mr. P. Venkatarama Reddy further contended that, so far as T.R.C. No. 143 of 1978 is concerned, the Tribunal has found that the collection charges were paid directly to the agent, and not to the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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