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2017 (11) TMI 136 - ALLAHABAD HIGH COURTValuation - scope of taxable turnover - whether cost of warranty replacement by Revisionist is liable to be treated as "taxable turnover" or not? - Held that: - It is not the case of Revisionist that relationship of Revisionist with "M/s MUL" is that of principal to principal but it admits that it is an authorized agency of "M/s MUL" and sale is being effected by manufacturing company through Revisionist. Similarly, goods have been supplied by M/s MUL directly and there is no independent transaction between Dealer and customer but Revisionist is acting as an agent of M/s MUL. Neither learned counsel for Revisionist could show any otherwise distinction nor there is any material to show that Revisionist Dealer acted as a Principal with respect to sale of vehicles as also replacement of parts and it was not an agent of manufacturer but its status is that of a Principal vis-a-vis M/s MUL. Reliance placed in the case of Mohd. Ekram Khan & Sons Versus Commissioner of Trade Tax, UP [2004 (7) TMI 341 - SUPREME COURT OF INDIA], where it was held that In a case manufacturer may have purchased from the open market parts for the purpose of replacement of the defective parts. For such transactions, it would have paid taxes. The position is not different because the assessee had supplied the parts and had received the price, and the transaction was subject to levy of tax. Revision dismissed - decided against revisionist.
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