STATE OF MYSORE Vs. G V DESHANUR

JUDGEMENT

(1.) This is a revision petition preferred by the State under section 23(1) of the Karnataka Sales Tax Act, 1957, against the order of the Sales Tax Appellate Tribunal, Bangalore, dated 13th April, 1973, in S.T.A. No. 242 of 1970, allowing the appeal of the respondent holding that the respondent had acted as the agent of the State Government in the matter of purchases and sales of foodgrains and was therefore exempt from sales tax.

(2.) The assessment relates to the period from 25th October, 1965, to 12th November, 1966. During the said period, the respondent-assessee acted as the agent of the Government in procuring foodgrains and distributing the same. The assessing authority in the assessment order stated that the assessee was acting as procuring and distributing agent in jawar, paddy and other foodgrains and food products on behalf of the Government of Mysore, but relying on the circular issued by the Commissioner of Commercial Taxes, dated 7th February, 1967, which granted exemption only in respect of sales made after 1st January, 1967, held that the turnover during the relevant period was not exempt. A sum of Rs. 18,861.66 was assessed as the tax payable by the assessee. That order of the Commercial Tax Officer was affirmed on appeal by the Deputy Commissioner of Commercial Taxes. In the appeal preferred by the assessee to the Sales Tax Appellate Tribunal, it was common ground that in the matter of procurement and distribution of foodgrains, the assessee acted as the agent of the State Government. This is what the Tribunal has stated in paragraph 6 of its order :

(3.) Before us, the learned Senior Government Advocates, Sri Chandrakantaraj Urs, submitted that the assessee was not the agent of the Government in the matter of procurement and sale of foodgrains. It is not open to the State to contend that the assessee was not acting as the agent of the State Government when that fact was not disputed before the Tribunal. We have to proceed on the common case submitted by the parties that there is no dispute that during the relevant period, the assessee acted as the purchasing and selling agent of the State Government.