TaxTMI 
TaxTMI 
1969 (4) TMI 92
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....1961-62 on the turnover of khandsari sugar manufactured by his principals?" The statement of the case is a consolidated one relating to two assessment years, viz., 1960-61 and 1961-62 and the question of law set out above is common to both the assessment years. M/s. Suraj Prasad Gauri Shanker of Varanasi (hereinafter referred to as the "assessee") carries on the business of commission agency and is also a dealer in oil-seeds and kirana. In respect of the assessment years in question a dispute arose between him and the Sales Tax Officer as to the former's liability to pay sales tax on the turnover of khandsari sugar sold by him as commission agent on behalf of his principals, who manufacture khandsari sugar in Uttar Pradesh. The assess....
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....1960, the rate of tax in respect of the turnover of individual goods mentioned in the aforesaid column 2 shall be as mentioned against each goods in column 5 of the Schedule hereto: SCHEDULE Sl. No. Name of goods. Circumstances under which to be taxed. Point of sale. Rate of tax 1 2 3 4 5 * * * * * 40. Khandsari sugar on which additional excise duty is not leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957, or if leviable, it has specifically been exempted from such levy. (a) (b) If imported from outside Uttar Pradesh. If manufactured in Uttar Pradesh. (a) (b) Sale by importer. Sale by Man....
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....rding to the explanation appended to that provision: "a factor, a broker, a commission agent or arhati..........who carries on the business of buying and selling goods on behalf of his principals or through whom the goods are sold or purchased, shall be deemed to be a dealer for the purposes of this Act." Section 2(i) defines "turnover" in the following terms: "turnover means the aggregate amount for which goods..........are sold..........either directly or through another on his account or on account of others.........." From a reading of the provisions set out above the scheme of the Act appears to be to tax a person who carries on the business of buying or selling goods on the aggregate of the sales effected by him during an assessmen....
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....ailable to a principal to avoid his liability where he can show that on his sales effected through a commission agent, the commission agent has already paid the tax. But no such protection has been afforded to the commission agent who cannot escape his liability by showing that the tax has been paid by his principal. Therefore, if we were to be guided by the charging section and the definitions reproduced above, the levy of tax upon the assessee could not be challenged. The question, however, arises as to what is the effect of the notification of 1st April, 1960. That notification, in our opinion, has materially altered the situation. Under that notification khandsari sugar manufactured inside the State is liable to tax only at one point....
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....n his representative capacity. The device of levying upon and collecting tax from the agents or other representatives of certain class of assessees is often resorted to in taxing statutes. In the Income-tax Act, 1961, such a device is embodied in Chapter XV. Sections 160 to 166 in that Chapter deal with representative assessees. Under those provisions tax is levied upon and recovered from an agent of a non-resident assessee, from the guardian or manager of a minor, lunatic or idiot, from Court of Wards, Administrator-General, Official Trustee, receiver or manager appointed by a court and from a trustee appointed under a trust. They are all called representative assessees and tax is levied and collected from them in respect of the income rec....