TMI Blog2016 (8) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... n the course of inter-State trade or commerce or exports them out of the territory of India. Surely therefore even if the finding of the Tribunal of the purchases being inter-State sale is accepted then also the revisionist was not liable to pay tax under Section 3-AAAA. The liability therefore thrust upon the revisionist on this score cannot be sustained. Accordingly this revision shall stand allowed - Decided in favor of assessee. - Sales/Trade Tax Revision No. - 330 of 2011 - - - Dated:- 28-7-2016 - Hon'ble Yashwant Varma, J. For the Applicant : Nikhil Agrawal For the Opposite Party : C.S.C. ORDER Heard the learned counsel for the revisionist and the learned standing counsel. The primary issue which falls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash or deferred payment or for commission, remuneration or other valuable consideration and includes- (i) a local authority, body, corporate, company, any co-operative society or other society, club firm Hindu undivided family or other association of persons which carries on such business; (ii) a factor, broke, arhti, commission agent, del credere agent, or any other mercantile agent, by whatever name called and whether of the same description as hereinbefore mentioned or not who carries on the business of buying, selling, supplying or distributing goods belonging to any principal, whether disclosed or not; (iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether as goods or in some other form) involved in the execution of a works contract; (viii) every person who carries on business of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. (emphasis supplied) Similarly it would be apposite to extract Section 3-AAAA of the 1948 Act which is in the following terms:- 3-AAAA. Liability to tax on purchase of goods in certain circumstances. - Subject to the provisions of Section 3, every dealer who purchases any goods liable to tax under this Act : - (a) from any registered dealer in circumstances in which no tax is payable by such registered dealer, shall be liable to pay tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be deemed to be in the same form and condition. (emphasis supplied) Insofar as the first part of the submission of Sri Agarwal is concerned, it is apparent that a farmer is a person who sells agricultural or horticultural produce grown by himself or grown on any land in which he may or may not have interest or which he may possess as a mortgagee, tenant or otherwise. Bearing in mind the above, it is clear that a farmer is not liable to be treated as a dealer by virtue of the Proviso to clause (vi) of Section 2 (c) of the Act. This then takes us to the provisions of Section 3-AAAA. In terms thereof, a dealer who purchases goods, which are liable to tax, from any person other than a registered dealer is made liable to pay ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts and records were produced for scrutiny and were so scrutinized by the assessing authority. The assessing authority further records that the declared sales and purchases were also duly verified and were borne out from the books of accounts which were maintained by the assessee. The assessing authority then proceeds to note that the penalty which had been imposed upon the assessee with reference to an earlier assessment year had come to be set aside. He accordingly held that no adverse consequences stood attached to the dealer. Upon this being the state of record, clearly there existed no circumstances which warranted the rejection of the books of the dealer. Accordingly this revision shall stand allowed. The orders dated 3 Oc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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