2016 (8) TMI 175

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....was stated to have been made by the assessee 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 Cou....

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....r otherwise buys, sells, supplies or distributes goods directly or otherwise for cash 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 princi....

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....from any person other than a registered dealer whether or not tax is payable by such person, shall be liable to pay tax on the purchase price of such goods at the 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 ....

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....reof however exempts the purchasing dealer from payment of tax if he is able to show that the goods have been resold within the State or in the course of inter-State trade or commerce or exported out of the territory of India in the same 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....