A C T O BIKANER Vs. MODERN ELECTRONICS

JUDGEMENT

(1.) THIS Revision has been directed against the judgment dated March 21, 1987 passed by Rajasthan Sales Tax Tribunal, Ajmer by which the Tribunal allowed the appeal filed by the assessee and set aside the enhanced tax and penalty imposed by the Assessing Authority.

(2.) BRIEF facts of the case are that the assessee M/s Modern Electronics is a registered firm doing its business at Bikaner with Branch office at Sri Ganganagar known as Standard Radios. For the assessment years 1969-70, 1970-71, 1971-72, and 1972-73, the assessee firm filed its return as nil. For the assessment year 1971-1972 the dispute relates to the sales of Kelvinator Refrigerator made in Sri Ganganagar which were received from M/s Spancer & Co. Delhi, who are the distributors of Kelvinator Refrigerators. The case of the assessee is that sales in Ganganagar district of these refrigerators to the individual and the Government Department were made by the Spencer & Co. direct to the customers on an order placed by them and the payment of the Refrigerators were received directly by the Spencer & Co. and the petitioner acted as a service agency only and, therefore, the sales in question are made directly by the Spencer & Co. Delhi- As the petitioner was not making any direct Sales of Refrigerators and, therefore he filed nil return regarding the sales tax of these articles. The assessing authority, on the basis of material seised and the correspondence made between the Company and the assessee came to the conclusion that sales in question are direct sales and are the sales of the assessee and he, therefore, assessed the assessee for the assessment years mentioned above and enhanced the tax. The Assessing Authority was also of the view that as the assessee concealed the tax, he, therefore, levied the penalty under sec. 16 (l) (i) of the Rajasthan Sales Tax Act. Dissatisfied with the order of enhancing the tax and imposing the penalty, the assessee preferred an appeal before the Deputy Commissioner (Appeals) Commercial Taxes Department Bikaner who by his judgment dated 12th of October, 1982 rejected the appeal filed by the assessee. Aggried with the order passed by the Deputy Commissioner of Appeals, the assessee preferred an appeal before the Rajasthan Sales Tax Tribunal Ajmer and the Tribunal by its order dated 21st of March 1987 allowed the appeal filed by the assessee and quashed the enhanced tax as well as the penalty levied by the Assessing Authority, it it against this order passed by the Tribunal that the present revision petition has been filed by the Department.