- (1.) We have heard Sri N. C. Mishra, learned counsel for the petitioner and Sri H. P. Srivastava, learned Additional Chief Standing Counsel for the respondents.
(2.) The petitioner is a registered dealer doing business, inter alia, of purchasing commission agency of essential oils. During the relevant period, the petitioner entered into a written composite agreement with M/s. Jindal Drugs Ltd., Gangyal, jammu, for purchase and dispatch of 1332 MT mentha oil on their behalf on commission basis for advances made by the ex-U. P. principal by bank transfer. Actual expenses and commission were to be charged by the petitioner and the ex-U. P. principal was to provide form F for the transaction. The registration certificate and the agreement with ex-U. P. principal have been brought on record.
(3.) The business of purchasing commission agency stands accepted by the assessing authority since its inception on November 9, 2005 till 2008-09 after detailed examination of the nature of transaction and books of account. The assessment orders of the previous years reflecting the aforesaid position have been brought on record. The petitioner purchases mentha oil from the farmers on behalf of ex-U. P. principal and dispatch as against statutory forms 6R, 9R and gate pass of mandi samiti. Mandi fee at the rate of 2.5 per cent is charged on removal of goods from mandi area for dispatch of goods to ex-U. P. principal. Name of ex-U. P. principal is mentioned on form 6R. The entry in books is also made on behalf of ex-U. P. principal. The goods are dispatched within two or three days of the purchase to the ex-U. P. principal as soon as one truck load of goods are purchased.;