2017 (8) TMI 51

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....nsideration in this writ petition, this Court may consider the submission and dispose of the writ petition. In the light of the same, this Court heard the learned counsels elaborately. 3. The issue which falls for consideration is whether the agency agreement entered into between the petitioner and M/s Saroj Sales Corporation and M/s Kulliyath Steel Traders in Kerala and the transactions of consignment transfer made by the petitioner to the said agent can be disbelieved for the reason assigned by the third respondent. The Appellate Assistant Commissioner, while reversing the order of assessment the petitioner pointed out, in my view rightly that in the absence of any specific period being mentioned in the agreement for it, to come to an en....

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....ppellate Assistant Commissioner set aside the assessment made on the petitioner. When the matter went before the third respondent at the instance of the first respondent, the third respondent granted relief to the petitioner in so far as one of the agents M/s BM Steel Agency, but, when it came to other two namely M/s Kaliyath Steel Traders and M/s Saroj Sales Corporation, the only reason assigned by the third respondent is that the agent is stated to have disposed of the goods within two or three days with an identical quantity and no records available for payment of godown rent etc.,. The most important aspect that should have been considered by the third respondent is that the Appellate Assistant Commissioner has specifically recorded tha....

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....otherwise, the section does not at all require any written agreement or contract evidencing appointment of agent for the purpose of effecting sales on consignment basis through agent by the principal moving the goods for such sale to another State. A perusal of form "F'' clearly indicates that the agent must be a registered dealer under the CSTA, where he transacts his business. It is also made clear by the first proviso to rule 12(5) that a single declaration may cover transfer of goods, by a dealer, to any other place of his business or to his agent or principal, as the case may be, effected during a period of one calender month. 17. The information required on the body of form "F" as to "date from which registration is valid" an....

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....he rule 12 and form "F" prescribed under the said Rule. We also quoted the interpretation, as given by learned authors K.Chaturvedi and M.K.Chaturvedi in their book on Central Sales Tax Laws, as stated above. We affix out seal of approval to the interpretation so given by the said learned authors." 9. As pointed out by the Honourable Division Bench, under sub-section 1 of section 6(A) Central Sales Tax Act and Form 'F' prescribed under Rule 12 (5) of the Central Sales Tax (Registration and Turnover Rules), 1957, there is no need or necessity for the agency to be always evidenced by a document in writing, but, it may also be oral and such an agency is deducible from the very nature of the transaction that took place between two diff....