1969 (7) TMI 105 - HC - VAT and Sales Tax

Summary

Issues:
1. Remand of cases under U.P. Sales Tax Act justified?
2. Entertaining additional ground after remand permissible?

Analysis:

Issue 1: Remand of cases under U.P. Sales Tax Act justified?
The case involved an assessee dealing in food-grains, oil-seeds, and gur for the assessment years 1959-60 and 1960-61. The dispute arose when the Sales Tax Officer included certain supplies in the assessee's taxable turnover, which the appellate authority later excluded, considering the assessee as a purchasing agent. However, the Commissioner of Sales Tax disagreed and filed revision petitions. The Judge (Revisions) remanded the matter for fresh assessments, leading to a reference to the High Court. The court upheld the remand order, stating that the Judge (Revisions) had the discretion to remand for a detailed inquiry, especially to determine if the supplies were made from the assessee's own stock or purchased from the market. The court found the remand justified based on the need for a thorough examination from a different perspective.

Issue 2: Entertaining additional ground after remand permissible?
Regarding the second issue, the department contended that the assessee might have acted as a commission agent for selling dealers, which could impact the tax liability. The Judge (Revisions) directed the Sales Tax Officer to investigate this aspect during the remand. The court held that this new plea was not beyond the scope of the original question of whether the assessee acted as a purchasing agent. If the assessee was found to be a commission agent, tax exemption as a purchasing agent would not apply. Therefore, the court deemed this aspect as part of the overall inquiry into the nature of the assessee's transactions. Consequently, both questions were answered in the affirmative, favoring the department and requiring the assessee to pay the costs of the references.

In conclusion, the High Court upheld the remand order as justified and permissible under the circumstances, and the additional ground raised post-remand was deemed relevant to the overall inquiry into the assessee's role as a purchasing agent.