SAI TRADERS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the orders of the Deputy Commissioner (CT), Visakhapatnam covered by Rc. No. 70/93 A8/GI No. 3510/88 -89, Dt. 10.5.95/26.6.95. Following the facts are leading to filing of this appeal: -

(2.) THE dealers have filed their objections in their letter Dt. 2.6.1991 contending that they are not liable to pay any tax on Rs. 1,38,330/ - he being agent of non -resident principals and that they stated that the delivery challans and the way bills also prove that the goods did not move as a result of direct inter -State sale. They have also stated that the production of 'F' forms in support of transfer of goods is not mandatory and that they produced letters of appointment as an agent by their principals and requested them to allow the exemption under CST Act.

(3.) LATTER the Deputy Commissioner(CT) Visakhapatnam, after verification of the records and orders of the assessing authority, found that the C.T.O., has incorrectly exempted a turnover of Rs. 1,38,300/ - under Section 6A of the CST Act. The D.C.(CT) also noticed that in the records that the agent dealer purchased the goods at one rate and passed on to the principal at another rate and that therefore there is an element of sale as per provisions of explanation -in under Section 2(n) of APGST Act and that therefore there was an inter -State sale. Therefore, he proposed to revise the assessment by levying of tax @ 10% on the turnover of Rs. 1,38,330/ - as it was not supported by 'C' forms and accordingly show cause notice was issued to the dealer inviting their objections. The dealer received the notice on 18.4.1995 but did not file any objections. Consequently, the D.C.(CT), Visakhapatnam passed an order imposing tax at 10% on turnover of Rs. 1,38,330/ - revising the orders of the assessing authority and directed the assessing authority to pass consequential order implementing the above revision order.