TMI Blog1959 (1) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ssrs District Refugee Cloth. Merchants Syndicate, Barnala District, Dhuri, to sales tax and called upon Shri Jagan Nath, President of the said Syndicate, to pay the sums of Rs. 8,909-8-0 and Rs. 7,013. The first assessment order related to the accounting period 13th April, 1950, to 31st March, 1951, and the second to the accounting period 1st April, 1951, to 31st March, 1952. The department made efforts to recover the amounts from Sri Jagan Nath, President of the Syndicate, but it appears it did not succeed to any appreciable extent. Shri Jagan Nath made an application to the Commissioner, Excise and Taxation, that the other members of the Association be also asked to pay. By means of order dated the 11th of February, 1953, the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs. 404-4-0 out of the arrears of Rs. 15,922-14-0 lying against Messrs District Refugee Cloth Merchants' Association, Dhuri, has been deposited by you as per notice from Shri Jagan Nath, President of the District Cloth Merchants' Association, Dhuri, dated 11th December, 1952. In view of this notice and amount of disallowances no other amount is recoverable from you in this respect." A copy of this letter has been placed on the present record as Annexure 'F'. On the 7th of July, 1956, warrant for the petitioner's arrest was issued and in the same he was called on to pay a sum of Rs. 3,775. On the 13th of August, 1956, the petitioner again applied for a copy of the order passed on his previous petition and having obtained a copy he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and the, relevant rule 39 while saying 'partner' obviously includes the members of any cooperative body or any other association." From the above observations it is quite clear that the Commissioner did not feel it necessary to record any finding on the point whether the petitioner was a partner in the assessee Syndicate. The Financial Commissioner has not even touched the point. It appears that both these officers have really relied on the definition of "dealer" and have purported to make the petitioner liable to pay the amount in question on the ground that he is a member of the association which is the "dealer" in the present case. Mr. Chetan Das appearing for the State conceded that there was no material on the record to show that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cloth to the District Refugee Cloth Merchants Syndicate, Barnala District, Dhuri, and that the said Syndicate in turn used to supply cloth to the various other associations who were members of the District Refugee Cloth Merchants Syndicate. It is not denied that the entire profits earned by the District Refugee Cloth Merchants Syndicate on the supplies of the cloth belonged exclusively to that Syndicate and were not shared by the other associations who in their own turn made profits on the cloth supplied to them. All other associations used to pay commission to the District Cloth Merchants Syndicate on such supplies of cloth as were made to them. The other associations cannot under these cricumstances be deemed to be partners of the Dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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