TMI Blog2023 (2) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Petitioner would not be covered by the definition of the word importer . If the Petitioner cannot be called to be a person who imports goods into the city limits for use or consumption or sale and if the Petitioner is also not the person who is alleged to be selling or buying goods for commission or remuneration or otherwise in the city, the Petitioner would not be a dealer within the contemplation of Section 2(16A). If this is so, then the Petitioner would not be liable for any registration for the purpose of LBT under rule 3 of the LBT Rules. In the present case, the Petitioner is not a dealer within the contemplation of the Maharashtra Municipal Corporation Act and therefore would not be a dealer as envisaged under Rule 3 of LBT Rules. As regards commission agent, or any other agent, we must say that the impugned order considers the Petitioner as a commission agent but, having regard to activity carried out by the Petitioner and service rendered by it, we have already found that the Petitioner, is a person who brings goods within the limits of the Corporation for the purpose of their delivery to the buyer who buys the goods independently from different seller by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s role in the whole transaction, could be termed to be either a Dealer or Commission Agent or Importer within the meaning of the relevant provisions of The Maharashtra Municipal Corporation (Local Body Tax) Rules, 2015, r/w. relevant provisions of the Municipal Corporation Act, 1888. 6. Learned Senior Advocate submits that the Petitioner is only a Preferred Logistics Service Provider in respect of goods purchased by various buyers from the sellers listed on E Commerce platform run by the Flipkart Internet Pvt. Ltd. with login ID as www.fipkart.com , and, not a dealer or commission agent or importer, within the contemplation of relevant rules. 7. Learned Senior Advocate submits that for the transaction of sale and purchase that takes place between the individual buyer and seller of the goods, internet platform operated by the Flipkart Internet Platform is being used. He further submits that once the transaction is over and the payment is made in advance or agreed to be made on delivery of goods, the Flipkart Internet Pvt. Ltd., on behalf of the concerned seller and also individual buyer, undertakes to deliver the goods through the Petitioner to the individual buyer at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the question is - Whether the Petitioner would be an entity which is liable for assessment and levy of LBT ? The question can be answered by ascertaining as to whether or not the relevant provisions of law contemplate for levy of LBT the kind of operations the Petitioner is carrying on. Let us, therefore, consider the relevant provisions of law. We would first begin with the definitions of relevant terms. Dealer and Importer are the terms which are relevant here. They are to be found in Sections 2(16A) and 2(28A). For the sake of convenience, both these provisions are extracted as below :- Section 2(16A) dealer means any person who whether for commission, remuneration or otherwise imports, buys or sells any goods in the City for the purpose of his business or in connection with or incidental to his business, and includes [ ] Exception . - (i) Any individual who imports goods for his exclusive consumption or use and a department of State or Central Government not engaged in business shall not be a dealer; Section 2(28A) importer means a person who brings or causes to be brought any goods into the limits of the City from any place outside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d importer . If the Petitioner cannot be called to be a person who imports goods into the city limits for use or consumption or sale and if the Petitioner is also not the person who is alleged to be selling or buying goods for commission or remuneration or otherwise in the city, the Petitioner would not be a dealer within the contemplation of Section 2(16A). If this is so, then the Petitioner would not be liable for any registration for the purpose of LBT under rule 3 of the LBT Rules. More clarity in respect of our above findings can be had by considering the relevant LBT Rules, which are Rule 3 and Rule 7. For the sake of convenience they are reproduced as below: 3. The limits of turnover for registration. (1). The limits [- - - - -] for registration shall be,- [(a) in the case of a dealer, who is an importer and the value of all the goods imported by him during the year is not less than Rs. 1,00,000. (b) in any other case, including the case where a dealer has not become liable to pay Local Body Tax under clause (a), and the turnover of all his sales or purchases during such year, is not less than Rs. 5,00,000.] (2) Notwithstanding anything co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchases during the year is not less than Rs.5 Lakhs. Thus, the requirement of registration for the purpose of assessment and levy of LBT under Rule 3 of LBT Rules, has been prescribed only in case of a dealer who is an importer or whose turnover of all sales or purchases during the year is not less than the amount prescribed therein. This rule does not refer to any person other than a dealer who is required to obtain registration under LBT Rules. Rule 7 deals with a commission agent or any other agent by whatever name called or an auctioneer importing goods on behalf of his principle into the limits of city for consumption, use or sale within the city limits, and prescribes that such commission agent or other agent or as the case may be, the auctioneer and the principle, shall, both jointly or severally be liable to pay Local Body Tax in respect of goods brought within the limits of the Corporation for consumption or use or sale. In the present case, the discussion made earlier, would show that the Petitioner is not a dealer within the contemplation of the Maharashtra Municipal Corporation Act and therefore would not be a dealer as envisaged under Rule 3 of LBT Rules. As reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
