1993 (3) TMI 347

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... vy of purchase tax is legal? . 2.. The relevant facts may be summarised in short. The assessee is a registered dealer under the Act and the question involved relates to an assessment proceeding pertaining to financial year 1966-67. During this period transaction in chillies were liable to levy of tax in the hands of the purchaser. The assessee filed a return showing gross turnover of Rs. 5,46,955.26. The assessing authority while examining the books of accounts found that the purchases of chillies to the extent of Rs. 2,94,952.48 has not been included in the taxable turnover on the ground that according to the assessee, in the transaction relating to this commodity, he has acted as an agent of both the seller and the purchaser and therefo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... urchase tax at the rate of 5 per cent from his principals of outside the State, which in the books of accounts had been shown under amanat khata. 3.. The assessee preferred an appeal and the appellate authority by placing reliance on a (sic) Allahabad judgment in the case of Commissioner, Sales Tax v. Vijay Kumar Krishna Kumar reported in [1968] 21 STC 37, remanded the case for fresh assessment. Against the said order both the assessee and the department preferred revisions before the Tribunal which were disposed of by a common judgment. The Tribunal after noticing the facts found by the assessing officer recorded its own finding on the basis of the books of accounts examined by them, which is as follows: The next question is whether t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s a broker in respect of certain transactions and as rightly held by the Tribunal, also has no bearing in the facts of the present case. But what seems to be strange to us is the finding of the Tribunal to the effect that the dealer has acted as an agent both of the cultivator-sellers as also the purchasers of outside the State. In our opinion, the same person can never be a seller as well as purchaser. He can either be a purchaser or a seller because in a transaction of sale there has to be necessarily two parties who can negotiate and settle the transaction. Therefore, the assessee in this case had acted either as an agent of the seller or the purchaser. 5.. From the facts as found by the assessing authority, as well as, the Tribunal cl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X