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2015 (1) TMI 637 - MADRAS HIGH COURTNature of cooperative society, dealer or not - Whether the respondent/society, which is a co-operative marketing society, is a dealer falling within the definition of Section 2(g) of the TNGST Act and liable to pay tax under the provisions of the TNGST Act – Held that:- Tribunal was right in setting aside the turnover relating to auction sale of agricultural produce by the assessee who had acted as agents of agriculturists with complete dominion over the goods - In The Tiruchengode Co-operative Marketing Society Limited Versus The State of Tamil Nadu [1977 (3) TMI 144 - MADRAS HIGH COURT] wherein the assessee rightly contended that in respect of the sales covering the turnovers in dispute, the society merely acted as an intermediary, bringing together the agriculturist-principals and the respective purchasers is auction held in the presence of the members and that the society did not actually do any business of purchasing or selling to make itself liable to assessment under the TNGST Act - the respondent/society acted as an intermediary, bringing together the agriculturists-principals and the buyer, and they have no authority to sell the goods and, therefore, the respondent/ society is not a 'dealer' as defined under Section 2(g) of the TNGST Act - as the respondent/society has not effected any sale, they have not acquired any turnover liable to sales tax – Decided against revenue.
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