TaxTMI 
TaxTMI 
1990 (9) TMI 305
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....ins levy orders of the State and Central Governments. It procures the foodgrains from the grower or the miller or huller, the points at which levy foodgrains are procured. Admittedly the company has a method by which it adds certain charges to constitute its selling price to which we have referred to in an earlier petition, namely, S.T.R.P. No. 48 of 1987 since disposed of on 13th September, 1990*. Its turnovers, both sales and purchases, are subject to tax. For the assessment year 1975-76 it returned turnover of Rs. 27,56,74,335.68. After claiming certain exemptions the taxable turnover returned was Rs. 6,97,13,311.88. The assessing authority, namely, the Assistant Commissioner of Commercial Taxes, Headquarters, Bangalore, for the relevant....
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....distributing agent, the wholesaler or retailer for sale of foodgrains appointed by the Government. Being aggrieved by bringing to tax the sale turnover at 1½ per cent, an appeal was preferred to the Deputy Commissioner of Commercial Taxes. Appeal having been dismissed and a further appeal preferred to the Karnataka Appellate Tribunal was also dismissed in Appeal STA. No. 322 of 1984 disposed of on 11th May, 1987. Therefore, the present revision petition. 2.. The facts themselves are not in dispute. Mr. Nagananda, learned counsel appearing for the Corporation submitted that the company was acting only on the instructions of the State Government and supplied the Joint Director with levy foodgrains and, therefore, it only acted as ag....
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....ble. 4.. Under section 5(1) of the Act, we should not lose the sight of the fact that the turnover of purchase and sale of all dealers is brought within the tax net. If the State Government was not a dealer it could not be hit by section 5 of the Act. 5.. The undisputed facts in this case are different. The company is a company incorporated under the Companies Act and by agreement with the State Government it is appointed to procure, store and distribute the foodgrains under levy orders as earlier stated by us. It procures foodgrains directly at the procurement point on payment of the price fixed by the Government known as the levy price. Therefore, the title in the foodgrains so procured vests in the company and it is thereafter tran....
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....ursuance of the Karnataka Rice Procurement (Levy) Order, 1981 or any other Foodgrains Procurement (Levy) Order of the Government of Karnataka for the time being in force, such sale shall not be deemed to be, but the subsequent sale by the said procurement agent or sub-agent shall be and shall be deemed to be the point at which the tax under this Act shall be levied." While the main body of the section is a charging section, the second proviso extracted above creates an exception in respect of sales made by the grower or the other person or persons at the point of levy from being exigible to tax. But, nevertheless, further acts as charging section to render the sale by the procuring agent immediately after procurement liable to sales tax.....