1990 (9) TMI 324

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rs. But on verification of his books of accounts at the time of assessment, the Commercial Tax Officer, Channapatna found that he had actually made purchases of groundnut from the unregistered dealers or agriculturists and thereafter again sold such purchased groundnuts to other registered dealers and in his bill of sale, showed 2 per cent as commission. Therefore, he claimed that he was a commission agent and not a first purchaser. That contention was rejected and such turnover which was actually against the payment to the agriculturists or unregistered dealers, was brought to tax holding the assessee as the first purchaser in the State. Aggrieved by that order, assessee filed an appeal to the Deputy Commissioner of Commercial Taxes (Appea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s. If assessee was really a commission agent and the said goods were sold subsequently for and on behalf of the agriculturists/principals, then such a transaction would not be exigible to tax under the Act. But, if the assessee had made purchases himself and sold the very same goods subsequently, he becomes the first purchaser liable to tax under the Act. For this purpose, the assessee has to establish that the goods in respect of which he acted as commission agent were sold subsequently. It is seen that the assessee moved for adjournment of the case when it was posted for final disposal before the Commissioner on the ground that the writ petitions, challenging his jurisdiction under section 22-A in similar cases, were pending in this Co....