SALES TAX COMMISSIONER Vs. PANNALAL NARENDRA KUMAR

JUDGEMENT

(1.) The respondent an assessee had challenged the order passed by Additional Assistant Commissioner, Sales Tax Jabalpur passed on 31.10.1985 in Case No. 78/82-83 Pravesh Kar (Entry Tax) wherein the petitioner was held liable to pay tax. The appeal No.l8/JBP/4/E/85-Pravesh Kar for the period 28.10.1981 to 15.11.1982 was dismissed therefore, the respondent/assessee filed further Appeal No.l44-PBR/87 before the Board of Revenue. The Board of Revenue was pleased to allow the appeal vide order dated 8.8.1989. Thereafter, the revenue made an application under section 44 of the M.P. General Sales Tax Act for making a reference to the High Court. After hearing the parties the learned Member, Board of Revenue was pleased to refer the matter to the High Court for answering the following question:

(2.) In the present matter undisputedly certain goods were sent by a third party which were received by the assessee as Aadhatiya of said person. The goods were sent by the outside dealer and the same were received for being sold in the market area by the assessee. The question which cropped up before the revenue authorities was whether the assessee who was working as an Aadhatiya was liable to pay tax. Though the Assessing Officer and the First Appellate Authority came to the conclusion that the assessee who sold the goods in his aadhat was liable to tax but the Board of Revenue held that the assessee was simply an Aadhatiya, therefore, he was not liable to pay the tax. The Board was also of the opinion that assessee did not cause entry of the goods in the local area but, in fact the goods were entered into the local area by the Principal by sending the goods. The Board of Revenue ultimately held that the assessee was not liable to pay any tax.

(3.) Shri Rahul Jain, learned Deputy Advocate General for the petitioner submitted that the Entry-Tax Act if is read with Madhya Pradesh General Sales Tax Act then Section 2(d) of M.P. General Sales Tax Act would come into operation and would define a dealer. According to him a commission agent called by whatever name 'Kachha Aadhatiya', Pakka Aadhatiya', agent, commission agent etc. would be taken to be a dealer for purposes of Section 2 (d) and as on his say the goods are allowed to enter in local, area, it could not be argued by the assessee that he is not liable to pay tax.