news round up - Taxmann

2010] Commissioner, Trade Tax v. K.S. Trading Co. (All.) 193
A
B
C
D
E
F
G
[2010] 1 GST 193 (ALL.)
HIGH COURT OF ALLAHABAD
Commissioner, Trade Tax, Lucknow
v.
K.S. Trading Co.*
DR. SATISH CHANDRA, J.
TRADE TAX REVISION NO. 146 OF 2008
AUGUST 21, 2009
INTER-STATE PURCHASE - Charge of tax - Assessment year 1998-99 -
Assessee claimed to be a commission agent for inter-State purchase and
sale of agricultural produce - Revenue authorities did not accept said
claim because there was neither any written contract or appointment
agreement between parties nor were there addresses of farmers -
However, in gate pass of Mandi Samiti, quantity of goods was mentioned
- Assessee also maintained builty and dispatch numbers evidencing
transport, wherein address of recipient was also available - Whether, in
age of electronic era, no formal contract is required and a telephonic
contract is sufficient and, therefore, on facts of instant case, it was to be
held that assessee was a commission agent making purchases for ex-U.P.
principals - Held, yes [Section 3 of the Uttar Pradesh Trade Tax Act,
1948]
FACTS
The assessee was a commission agent for the purchase and sales of
different agricultural produce. The assessee made the purchases for ex-
U.P. principals on commission basis. The Assessing Officer found that no
contract whatsoever had been entered into with the ex-U.P. principals and
they never appointed the assessee as their agent and supply orders were
made only on the basis of the alleged telephonic calls which could not be
ascertained. The Assessing Officer also observed that the purchases from
the farmers were not verifiable as the full addresses of the farmers were
not given. The Assessing Officer refused to treat the said transactions as
inter-State purchases. The Assessing Officer observed that the purchases
were made for self so he levied the tax which was restricted by the first
appellate authority. On second appeal, the Tribunal accepted the plea of
the assessee by observing that it had sent its goods outside U.P.
On revision :
*In favour of assessee.
GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 69