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TMI Blog2000 (8) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of L-14 or L-14A licence issued under the Punjab Liquor Licence Rules, 1956, fall within the meaning of the term "buyer" under section 206C of the 1961 Act and whether the Excise Department is required to collect 10 percent. of the licence fee as income-tax from such licensees is no longer res integra and must be treated as conclusively decided against the Revenue in view of the following decisions of this court: (i) K. K. Mittal and Co. v. Union of India [1991] 187 ITR 208; (ii) K. K. Mittal and Co. v. Union of India [1993] 203 ITR 201; (iii) Satya Pal Amrik Singh and Co. v. Union of India [1997] 228 ITR 653; (iv) C. W. P. No. 15583 of 1999-Naresh Kumar and Company v. Union of India [2000] 243 ITR 760 decided on February 22, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation. There are then three clauses according to which certain classes of persons are excluded from the concept of buyers as defined in section 206C with the result that persons who fall in any of these three clauses will not be covered by the definition even if they are covered by the first part. A buyer in the further sale of such goods is one of the classes of persons who stand excluded from the definition by virtue of sub-clause (ii) of clause (a) of the Explanation being the subsequent buyers. The petitioners before us undoubtedly purchased country liquor from the wholesalers who are L-13 licensees and the latter had purchased the same from the distilleries (manufacturers). The sale in favour of the petitioners is thus a second sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L-13 licensees. Now coming to the judgment of the Patna High Court in State of Bihar's case [1993] 202 ITR 535. It is true that the State of Bihar was held to be a seller of alcoholic liquor for human consumption within the meaning of sections 44AC and 206C of the Act as they then stood but, in our opinion, this judgment is of no help to the Department. The provisions of sections 44AC and 206C of the Act as they then stood were under consideration of the learned judges which provisions are materially different from section 206C of the Act which is under our consideration. Another Bench of the same High Court in Ramjee Prasad Sahu v. Union of India [1993] 202 ITR 800, considered the provisions of section 206 of the Act as were introduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether L-14A licensees can be treated as "sellers" and answered the same in the negative by making the following observations: "There is yet another aspect of the matter. The Deputy Commissioner of Income-tax has held that the Excise and Taxation Commissioner who issued L-14A licences to the petitioners in an open auction is the seller within the meaning of section 206C of the Act and was, therefore, required to collect 10 per cent. of the licence fee as income-tax at source. We are of the opinion that this view of the Income-tax Department is wholly misconceived and not warranted from the provisions of section 206C of the Act. A seller is required to collect 10 per cent. of the amount as income-tax at source only on the sale of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to the account of the buyer or at the time of receipt of any such amount in cash or by cheque or draft or by any other mode. It is thus clear that what is collectible is 10 per cent. of the amount payable. The amount payable is that amount which is payable at the time of debiting the amount to the account of the buyer or at the time of receiving money from him in cash or by cheque or by draft or by any other mode for the goods sold to him. That amount, in our opinion, is the purchase price which the buyer pays to the seller for the goods sold and in the cases before us the amount which the petitioners pay to the wholesaler after they have obtained a permit from the Excise Department by depositing the excise duty. The amount payable would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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