K MOHIDIN SAHEB Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THIS revision petition is filed under Section 23 (1) of the Karnataka Sales Tax Act, 1957 and rule 31 (1) (a) of the Karnataka Sales Tax Rules, 1957, against the order dated March 1, 1995 passed in T. A. No. 206 of 1987 on the file of the Karnataka Appellate Tribunal, Bangalore, dismissing the appeal and confirming the order passed in KST/ SMR/36-86-87 dated December 18, 1988, on the file of the Deputy Commissioner of Commercial Taxes, Bangalore.

(2.) THE petitioner herein is engaged in the business of dry fish, fish manure and fish oil and registered as a dealer under the provisions of the Act. For the assessment year 1979-80, the assessing authority passed the assessment order on September 30, 1985. While passing the said assessment order, the assessing authority exempted the purchase value of fish oil made from unregistered dealers and sold in the course of export against H declaration forms. The assessing authority granted exemption on the ground that the assessee-petitioner acted as purchase commission agent and he made purchases of fish oil only for and on behalf of registered dealer, viz. , Bawa Fish Meal and Oil Co. , Mangalore, and has purchased fish oil to the tune of Rs. 2,81,638. 24.

(3.) THE Deputy Commissioner of Commercial Taxes as he then was, initiated proceedings under section 21 (4) of the KST Act to revise the assessment order stating that the assessment order is improper, illegal and prejudicial to the interests of Revenue, as the exemption is wrongly granted to the petitioner. A notice was issued and a reply was filed by the petitioner in response to the notice and thereafter, the revisional authority made out a case for action under Section 21 (2) of the Act since according to the revisional authority, the commission on a turnover of Rs. 2,81,638. 24 has been wrongly allowed and after following due procedures prescribed under law, directed levy of tax under Section 6 on a turnover of Rs. 1,96,223 and withdrawal of exemption on a turnover of Rs. 2,81,638 and directed to levy accordingly.