VINOD COAL SYNDICATE Vs. COMMISSIONER OF SALES TAX U P LUCKNOW U P

JUDGEMENT

(1.) THIS appeal by special leave is directed against the judgment and order of the High Court of Allahabad allowing a revision petition filed by the Commissioner of Sales Tax, U.P. in the view that the amount paid by way of freight by the principals of the appellant-commission agent was liable to be included in the taxable turnover of the appellant.

(2.) THE appellant, M/s. Vinod Coal Syndicate, is a commission agent in the coal business. In assessment proceedings under the U.P. Sales Tax Act, 1948, for the assessment year 1975-76, the appellant was assessed to sales tax on a taxable turnover of Rs. 6,16,629. This amount included the sums paid by the principals to the appellant for supplies of coal made directly by the suppliers. The assessing authority treated the sums paid on account of freight in respect of such supplies as sums includible in the taxable turnover of the appellant. The appellant proceeded in appeal against the assessment, and thereafter preferred a revision application against the dismissal of his appeal. The Additional Judge (Revisions) accepted the contention of the appellant and excluded the amount paid on account of freight from the taxable turnover of the appellant. The Commissioner of Sales Tax applied for in revision to the High Court, and as mentioned earlier, the revision petition was allowed.

(3.) THE appeal is allowed. The judgment and order of the High Court are set aside and the order of the Additional Judge (Revisions), Sales Tax, Varanasi, is restored. There will be no order as to costs. Appeal allowed.