LAKSHMINARAYANA TRADERS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THESE four appeals are filed by the respective appellants questioning the common orders of the appellate Deputy Commissioner, by which the orders of the assessing authority subjecting the respective disputed turnovers relating to sales of jaggery to tax were confirmed. The particulars of the present appeals are as follows :

(2.) T .A. 352/90 and 459/90 are filed by one appellant by name M/s. Lakshminarayana Traders, Anakapalle while T.A. 460/90 & 353/90 are filed by another appellant M/s. Lakshminarayana Trading Corporation, Anakapalle. Both the appellants are assessees on the rolls of the Commercial Tax Officer, Anakapalle. They are dealers in 'jaggery' and acted as commission agents on behalf of ryot principals who bring jaggery to them for sales. During the assessment years 1985 -86 and 1986 -87 they effected sales of jaggery as agents of ryot principals and the disputed turnover in each case relates to such sales. The assessing authority subjected the disputed turnovers to tax in the hands of the appellants on the ground that they acted as commission agents of ryot principals and that such turnovers are exigible to tax in their hands as they are to be considered as 'dealers' as defined in the APGST Act. The assessing authority also found that the appellant will be liable to additional tax and surcharge on such turnovers. The appellants however filed appeals before the Appellate Deputy Commissioner questioning such orders of the assessing authority contending that the disputed turnover cannot be assessed to tax in their hands as they neither purchased nor sold the jaggery, that additional tax cannot also be levied on such turnovers in their hands as the turnover of such ryot principals is less than Rs. 2 lakhs and that the orders of the assessing authority are therefore liable to be set aside in that regard. The Appellate Deputy Commissioner, however, dismissed all the appeals and as such the present appeals are filed before this Tribunal. As the points involved for consideration in all the appeals are the same, they are heard together and are being disposed of by a common order.

(3.) POINT No. 1: - The present appeals relate to the assessment year 1985 -86 and 1986 -87. Both the appellants are commission agents dealing in jaggery. Agriculturists bring jaggery to their premises and such jaggery is sola to various dealers through the appellants who act as their agents in effecting sales. The appellants did not dispute their liability to pay tax on such sales of jaggery effected by them as agents of ryot principals till 1 -7 -1985 when Section 11 of APGST Act was in force. Sec. 11 of APGST Act which was omitted w.e.f. 1 -7 -1985 was to the following effect: