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TMI Blog2006 (11) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... rm IIIB. Dealer filed first appeal before the Deputy Commissioner (Appeals), Trade Tax, Sitapur, which was rejected. Dealer filed second appeal before the Tribunal. The Tribunal by the impugned order, allowed the appeal and deleted the tax on the aforesaid turnover. The Tribunal held that the principal had issued form IIIB and liability to pay tax was on the principal and not on the commission agent. Heard learned Standing Counsel as well as Sri K. Saksena appearing on behalf of the dealer/opposite party. With the consent of both the parties, present petition is being disposed of finally. Learned Standing Counsel submitted that section 2(c) defines dealer which includes commission agent, thus commission agent is liable for tax under the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover of first purchases under that sub-section, or where any goods are purchased by any dealer in circumstances in which such dealer is liable to purchase tax in respect thereof under section 3AAAA and the dealer holds a recognition certificate issued under sub-section (2) in respect thereof, he shall liable in respect of those goods to tax at such concessional rate, or be wholly or partly exempt from tax, whether unconditionally or subject to the conditions and restrictions specified in that behalf, as may be notified in the Gazette by the State Government in that behalf; (a1)Where any declared goods liable to tax under sub-section (1) of section 3D are sold or supplied by a dealer, who is the first purchaser thereof, to another deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealers who are holding recognition certificate are entitled for the benefit of section 4B of the Act and not the commission agent, therefore, the present dealer who acted as a commission agent, was not entitled for the benefit of exemption under section 4B of the Act. Argument of learned counsel for the dealer is that since the principal had issued form IIIB to the selling dealer, therefore, the dealer is liable to tax and not the commission agent, cannot be accepted. In my view, issue of form IIIB by the principal-manufacturer to the selling dealer, is wholly irrelevant and has no effect on the liability of tax on the commission agent. Under section 3D(3) in case commission agent has paid tax on behalf of principal in respect of that tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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