9911796707
TMI Blog1997 (7) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... of the High Court See Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Peninsulax Traders [1992] 85 STC 527. at Kerala in tax revision cases. 2.. On 23rd March, 1970, the appellant, M/s. Peninsular Traders (now referred to as "the firm"), entered into an agreement with the appellant, M/s. Indian Rare Earth Ltd. (now referred to as "the company"), for the "distributorship of trisodium phosphate". For the assessment years 1970-71 to 1973-74 the firm was treated as the agent of the company and assessments were finalised accordingly. On 17th January, 1976, the Deputy Commissioner issued notices under section 35 of the Kerala General Sales Tax Act setting aside the aforesaid assessments and remanding the matters to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Kerala. Clause (2) required the firm to sell the said chemicals on the company's behalf at prices to be fixed by the company from time to time, the current prices being set down, in addition to which the firm was entitled to charge reasonable transportation and other expenses incurred by it. Clause (3) stated that the selling price was subject to revision by the company at its discretion and that buyers from the firm would not be entitled to any compensation in respect of unsold stock held by them on the date from which the revised price became effective. Clause (6) required the firm to send to the company monthly statements showing the total quantity of the said chemicals received from the company during the month, the quantity and va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delay beyond 30 days from the date of delivery of the material you will pay interest at the rate of 9 per cent per annum on the amount outstanding from time to time. If you make default in payment for a period of 2 months, the company reserves the right to terminate this appointment without notice to you. But the termination of the appointment will not prejudice the right of the company to proceed against you for the balance amount due to the company." Clause (5) stated that the company would endeavour to make regular supplies of the said chemicals to the firm but that the firm should arrange to collect the same from its works. It fixed the quota to which the firm was entitled. Clauses (7) and (8) read thus: Clause (7): "You will be resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom itself; so also clause (8), the terms whereof are not an unusual obligation undertaken by an agent. 8.. The view that we take is supported by the observations of the Tribunal made in regard to the books of account of the company. The relevant entry, quoted below, speaks of the manner in which the parties implemented the agreement: "We hereby certify that the sum of Rs. 11,79,097.00 being the value of 1,100.70 metric tonnes of trisodium phosphate sold by Messrs. Peninsular Traders, Perumbavoor, Kerala State, on our behalf during the period from 1-4-1971 to 31-3-1972 have been included in our annual return for the year 1971-72 submitted to the Assistant Commissioner of Sales Tax (Assessment), Sales Tax Office, Special Circle, Ernakulam, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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