- (1.) These two revisions under Section 11 of the U.P. Trade Tax Act (hereinafter referred to as the "Act") are directed against the orders of the Tribunal dated 19th, July, 1996 and 31st, May, 1997 relating to assessment years 1984-85 and 1985-86 under the Central Sales Tax Act respectively.
(2.) The brief facts of the case are that the present dealer/opp. party entered into a contract with S/S Indian Fragrances and Chemicals Works, Kannauj and S/S Ram Narain Raj Narain, Kannauj vide agreement dated 01.12.1984 to act as an Agent and to make purchases of Sandal Woods on their behalf in an auction held at Tamil Nadu. Copy of the agreement has been filed by the learned Standing Counsel alongwith the Supplementary affidavit. In pursuance of the agreement, dealer purchased Sandal Woods in an auction held at Tamil Nadu. Admittedly, it was purchased in its own name. Thereafter, the Sandal Woods were dispatched to Kannauj and builties were prepared in the name of self which were subsequently endorsed in favour of S/S Ram Narain Raj Narain, Kannauj and S/S Indian Fragrances and Chemicals Works, Kannauj. The Assessing Authority had held that since the purchases were made by the dealer in its own name and builties were prepared in the name of self which were subsequently endorsed in favour of two parties. They were inter-State sales by the dealer in favour of S/S Ram Narain Raj Narain, Kannauj and S/S Indian Fragrances and Chemicals Works, Kannauj and in the absence of Forms-C, levied tax @ 12% on the estimated turnover. Dealer filed appeals before the Commissioner of Trade Tax. Both the appeals have been allowed in part. It appears that before the Appellate Authority, dealer filed Forms-C obtained from the aforesaid two parties to get the benefit of concessional rate of tax. Forms-C were accepted and the tax were reduced from 12% to 4%. Being aggrieved by the order of the First Appellate Authority, dealer as well as the Commissioner of Trade Tax filed appeals before the Tribunal. The Tribunal by the impugned order, rejected the appeals of Commissioner of Trade Tax and allowed the appeals of the dealer. The Tribunal held that the dealer acted as a Purchasing Commission Agent and made purchases on behalf of two parties namely S/S Ram Narain Raj Narain, Kannauj and S/S Indian Fragrances and Chemicals Works. Kannauj. The Tribunal held that the purchases were made in pursuance of agreement of the agency and after making the purchases, necessaries entries in the books of account were made in the account of the aforesaid two parties. All the expenses relating to the purchases have also been debited in their account and only commission had been charged. It has also been observed that the freight have also been paid by the aforesaid two parties at the time of taking the delivery of the good.
(3.) Heard learned Counsel for the parties.;