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TMI Blog1990 (9) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... miller or huller, the points at which levy foodgrains are procured. Admittedly the company has a method by which it adds certain charges to constitute its selling price to which we have referred to in an earlier petition, namely, S.T.R.P. No. 48 of 1987 since disposed of on 13th September, 1990*. Its turnovers, both sales and purchases, are subject to tax. For the assessment year 1975-76 it returned turnover of Rs. 27,56,74,335.68. After claiming certain exemptions the taxable turnover returned was Rs. 6,97,13,311.88. The assessing authority, namely, the Assistant Commissioner of Commercial Taxes, Headquarters, Bangalore, for the relevant assessment year refused to accept sales in favour of the Joint Director of Food and Civil Supplies, Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g aggrieved by bringing to tax the sale turnover at 1 per cent, an appeal was preferred to the Deputy Commissioner of Commercial Taxes. Appeal having been dismissed and a further appeal preferred to the Karnataka Appellate Tribunal was also dismissed in Appeal STA. No. 322 of 1984 disposed of on 11th May, 1987. Therefore, the present revision petition. 2.. The facts themselves are not in dispute. Mr. Nagananda, learned counsel appearing for the Corporation submitted that the company was acting only on the instructions of the State Government and supplied the Joint Director with levy foodgrains and, therefore, it only acted as agent and therefore, there was no sale. 3.. We find it very difficult to accept that proposition despite the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sale of all dealers is brought within the tax net. If the State Government was not a dealer it could not be hit by section 5 of the Act. 5.. The undisputed facts in this case are different. The company is a company incorporated under the Companies Act and by agreement with the State Government it is appointed to procure, store and distribute the foodgrains under levy orders as earlier stated by us. It procures foodgrains directly at the procurement point on payment of the price fixed by the Government known as the levy price. Therefore, the title in the foodgrains so procured vests in the company and it is thereafter transferred to others for a consideration. Even in the case of any transfer on instructions in favour of the Joint Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of Karnataka for the time being in force, such sale shall not be deemed to be, but the subsequent sale by the said procurement agent or sub-agent shall be and shall be deemed to be the point at which the tax under this Act shall be levied." While the main body of the section is a charging section, the second proviso extracted above creates an exception in respect of sales made by the grower or the other person or persons at the point of levy from being exigible to tax. But, nevertheless, further acts as charging section to render the sale by the procuring agent immediately after procurement liable to sales tax. Therefore, on the undisputed facts of this case the sale in favour of the Joint Director of Food and Civil Supplies w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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