9911796707
TMI Blog1974 (7) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Excise Act and the Rules made thereunder to get such sub-leases recognised. On the basis of the sub-leases granted by the petitioner the sub-lessees commenced to vend toddy at the places assigned to them on payment of the agreed amount to the petitioner. The petitioner brought to the notice of the excise authorities that he had sub-leased his privilege in favour of others and requested them to recognise the same. Before the excise authorities could make an order recognising the sub-leases the period of lease was over. Hence no order was passed on the application of the petitioner. So far as his liability under the Excise Act is concerned it is stated that the petitioner has discharged the same. 2.. The turnover in respect of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause at several places in the district of South Kanara toddy was being sold by the sub-lessees of the petitioner, the petitioner must be held liable to pay sales tax in respect of the entire turnover. It is also stated that in the instant case the sub-leases had not been approved by the excise authorities and hence the sales effected by the sub-lessees should be treated as sales effected by the petitioner himself. 4.. Under the Act sales tax is payable only by a dealer or by some other person so liable under the Act to pay the tax. The department is of the view that the petitioner is liable to pay sales tax as a dealer. The expression "dealer" has been defined in the Act as follows: " 'Dealer' means any person who carries on the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness carried on by the dealer is lawful or not. Even when buying, selling, supplying or distributing goods is not authorised by law, a person who carries on those activities would be liable to pay sales tax under the Act. Hence the contention urged on behalf of the department that in the absence of the recognition of the sub-leases granted by the petitioner the turnover of the sales effected by the sub-lessees cannot attract the liability to payment of sales tax is not tenable. 6.. The next question is whether in respect of the turnover of the sales effected by the sub-lessees the petitioner can be held liable under the Act to pay sales tax. It may be that a principal is liable to pay sales tax when a person acting within the scope of hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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