TATA OIL MILLS COMPANY LIMITED Vs. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES ASSESSMENT I BANGALORE CITY

JUDGEMENT

(1.) The petitioner, the Tata Oil Mills Company Limited, Bangalore, is common in these writ petitions. The petitioner is having its branch office in Bangalore for the purpose of marketing its products. The petitioner appointed Messrs. Gekayel Enterprises, Bangalore, as one of their commission agents under an agreement entered into between them. The sales were being effected by the agent to various dealers on wholesale basis and the sales tax was collected by the commission agent.

(2.) For the assessment periods 1st April, 1976, to 31st March, 19777, and 1st April, 1977, to 31st March, 1978, it was seen on verification by the department that tax for the two periods had not been paid by the Gekayel Enterprises. Therefore, a proposition notice in form No. 31-A was issued on 8th March, 1979, for the year ending 31st March, 1977, and on 17th December, 1981, for the year ending 31st March, 1978, produced as annexure B in each of the writ petitions. After hearing the representative of the petitioner-company the assessments for both the years were completed by the Assistant Commissioner of Commercial Taxes (Assessment) I, City Division, Bangalore.

(3.) It was contended by the petitioner-company before the assessing officer that the tax was being collected by their commission agent M/s. Gekayel Enterprises on the sales effected by them during the two periods and therefore Gekayel Enterprises should be assessed to sales tax and to collect the same from them.