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2019 (7) TMI 321 - HC - VAT and Sales TaxRejection of commission purchase claimed by the assessee for or on behalf of ex U.P. principals - whether there were pre-existing contract (either written or oral), between the present assessee to make purchases of food grains for or on behalf of its ex U.P. principals? - HELD THAT:- The payments that have been received by the assessee against the single draft covering the value of goods, expenses and the commission charges could itself never form the basis for rejection of the claim as it is in no manner prescribed by law that commission charges should be paid separately and there is no prohibition operating on the ex U.P. principals from making such payment in a composite manner. What was of relevance was for the authorities to examine whether there was commission agency in existence viz-a-viz the transactions. The absence of the octroi receipts is again of little consequence. If the finding of facts were to be reached by the authority that there existed a commission agency that was operated by the present assessee whereunder it had purchased and dispatched goods to ex U.P. principals and if the goods had actually been dispatched in the manner claimed by the assessee, the absence of octroi receipts would not mitigate against the claim made by the assessee. The question framed above is answered in affirmative i.e. in favour of the assessee and against the revenue
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