9911796707
TMI Blog1990 (9) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... Channapatna found that he had actually made purchases of groundnut from the unregistered dealers or agriculturists and thereafter again sold such purchased groundnuts to other registered dealers and in his bill of sale, showed 2 per cent as commission. Therefore, he claimed that he was a commission agent and not a first purchaser. That contention was rejected and such turnover which was actually against the payment to the agriculturists or unregistered dealers, was brought to tax holding the assessee as the first purchaser in the State. Aggrieved by that order, assessee filed an appeal to the Deputy Commissioner of Commercial Taxes (Appeals), Bangalore Division, Bangalore. The Deputy Commissioner passed order dated 28th October, 1977, allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the agriculturists/principals, then such a transaction would not be exigible to tax under the Act. But, if the assessee had made purchases himself and sold the very same goods subsequently, he becomes the first purchaser liable to tax under the Act. For this purpose, the assessee has to establish that the goods in respect of which he acted as commission agent were sold subsequently. It is seen that the assessee moved for adjournment of the case when it was posted for final disposal before the Commissioner on the ground that the writ petitions, challenging his jurisdiction under section 22-A in similar cases, were pending in this Court. The Commissioner did not grant the adjournment sought. We think that the cause shown by the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... middleman really did not exist in those transactions and therefore, they must be held to be sales from agriculturists or unregistered dealers in favour of the assessee. 3.. Mere form of bill of sale or method of accounting cannot alter the nature and correctness of the transaction between agriculturists and the assessee in respect of such turnover for which he had paid the cost or price of groundnut on his own account. Therefore, he was the first purchaser and the Commissioner had come to the correct conclusion that he was not eligible to the exemption as held by the assessing authority. 4.. Therefore, total exemption given by the Deputy Commissioner of Commercial Taxes was correctly set aside by the Commissioner in the suo motu revisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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