DEVAKI RANGANATHAN Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THE two appeals filed by the same appellant/assessee involving the same question of law and hence are heard and are being disposed of together by a common order. T.A. 174/93 relates to a disputed turnover of Rs. 54,20,247.00, taxed @ 7.15 per cent for the assessment year 1989 -90. T.A. No. 366/93 relates to a disputed turnover of Rs. 29,49,347.44ps., taxed @ 6.05 per cent for the assessment year 1988 -89. The disputed turnover in both the cases related to turnovers of purchase of Chillies on behalf of non -resident principals.

(2.) THE appellant is a dealer in chillies at Guntur carrying on business both on his own account as well as agency business. The turnover and the tax levied regarding his turnover on his own business is not in dispute. The contention of the appellant is that the disputed turnover relates to chillies which he purchased as an agent on behalf of non -resident principal and despatched without any delay. The appellant contended before the Commercial Tax Officer relying upon a Judgment in Irre Veera Raju and Others Vs. The Commercial Tax Officer & Another, Tadepalligudem (20 STC 501 (AP)) that imposition of additional tax and 10 per cent surcharge thereon on agency transactions on the ground that his turnover exceeded Rs. 50 lakhs was wrong since he must be considered as a dealer with respect to each principal and when each principal's turnover did not exceed the taxable limit, no tax was payable by him. Both the Commercial Tax Officer, and the Appellate Deputy Commissioner rejected his contention and taxed the transactions covered by the disputed turnovers in both the assessment years. The Appellate Deputy Commissioner held that "while deleting Section 11 under APGST Act by Amendment Act 18/1985, definition of turnover under Section 2(1)(a) has been amended and amplified bringing in transactions effected on account of others also into its fold and hence the turnover of the agent on account of their principal will also form part of total turnover of agent dealer and hence the agency transactions are liable for additional tax".

(3.) THE point for consideration in these appeals is: -