DWIVEDI, J. - (1.) THESE are two references under section 11(3) of the U.P. Sales Tax Act at the instance of the assessee, the Co-operative Marketing Society Limited, Kalpi. At its instance, this court directed the Judge (Revisions) to refer to this court along with the statement of the case these two questions : "(1) Whether on the facts found, the assessee could be deemed to be a dealer as defined by he U.P. Sales Tax Act in relation to the transactions of its agriculturist-members ? (2) Whether on the facts and circumstances of the case, the sale of agricultural produce grown by the agriculturist-members of the assessee is liable to be included in the assessee's turnover ?
(2.) THE relevant assessment years are 1962-63 and 1963-64. In these years, the assessee carried on some business of its own. The assessee has paid tax on the turnover of its business. The dispute in the reference is in respect of the turnover of sale of agricultural produce belonging to the members of the assessee. The case of the assessee before the sales tax authorities was that it was not a dealer in respect of those sales. It contended that it was a mere taula (weigh-man). The assessing authority did not accept this case. He found that it was acting as a commission agent and was merely a dealer within the meaning of the explanation to section 2(c) of the U.P. Sales Tax Act. The finding of the assessing authority was affirmed in appeal and revision.
(3.) THE alternative case of the assessee before the assessing authority was that the agricultural produce of its members should be deemed to be its own agricultural produce. If it is so regarded, then the assessee will be exempt from being taxed on the sale of agricultural produce. This contention was accepted.;