TaxTMI 
TaxTMI 
2016 (8) TMI 175
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....e on commission basis for and on behalf of ex-U.P. principals. Admittedly, the revisionist is stated to have purchased timber from farmers in the usual course of business on which the petitioner obtained the requisite forms as mandated under the provisions of the U.P. Krishi Utpan Mandi Adhiniyam 1964. The issue of his eligibility to pay purchase tax under Section 3-AAAA came to be raised by the assessing authority. It was submitted before this Court that on the findings as recorded by the assessing authority as well as those which have been come to be recorded by the Tribunal, the assessee could not be held liable to pay purchase tax under Section 3-AAAA. Sri Nikhil Agarwal has taken the Court through the relevant provisions of the 1948 ....
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....ash or for deferred payment or for commission, remuneration or other valuable consideration; (v) every person who acts within the State as an agent of a dealer residing outside the State, and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as - (A) a mercantile agent as defined in the Sale of Goods Act, 1930, or (B) an agent for handling of goods or documents of title relating to goods; or (C) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or such payment; (vi) a firm or a company or other body corporate, the principal office or head quarter whereof is outside the State, having a branch or office in the State, in respect of purcha....
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....e same rate at which tax is payable on the sale of such goods: Provided that no tax shall be leviable on the purchase price of such goods in the circumstances mentioned in clause (a) and (b), if - (i) such goods purchased from a registered dealer have already been subjected to tax or may be subjected to tax under this Act; (ii) tax has already been paid in respect of such goods purchased from any person other than a registered dealer; (iii) the purchasing dealer resells such goods within the State or in the course of inter-State trade or commerce or exports out of the territory of India, in the same form and condition in which he had purchased them; (iv) such goods are liable to be exempted under Section 4-A of the Act. Explanat....
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....me form and condition in which he had purchased them. Significantly, the Tribunal while dealing with this issue records that the purchases effected by the revisionist was liable to be characterized as an inter-State sale. Despite recording the above, it has held the revisionist liable to pay tax under Section 3-AAAA of the Act. As rightly submitted by the learned counsel for the revisionist in terms of the plain and express language of sub clause (iii) to the Proviso to Section 3-AAAA, the purchasing dealer is exempted from payment of tax if he resells such goods within the State or in the course of inter-State trade or commerce or exports them out of the territory of India. Surely therefore even if the finding of the Tribunal of the purch....