KHUSHI RAM AGENCIES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) HEARD the learned counsel for the petitioner.

(2.) THE points raised by the learned counsel for the petitioner in these revision petitions are as under:- " 1. Whether the assessee, after submitting Form No. ; ST- 41, stands discharged from liability of payment of tax in view of sub-rule (2) of Rule 42-A? 2. Whether, in case when Form No. ST-41 is submitted, the Assessing Authority should proceed, in case the Assessing Authority decideds to hold any inquiry, first against the agent of the assessee treating the Form No. ST-41 as a proof of recovery and payment of tax by the agent of the Principal because of the reason that Form No. ST-41 is a proof of recovery of the tax amount by the agent of the Principal? 3. Whether, even if there is a joint and several liability of payment of tax of the Principal and the agent, still when Forms Nos. ST-40 and ST-41 are submitted then the Assessing Authority can proceed only against the agent and can recover the tax amount after exhausting the remedy of recovery of tax from the agent?" In addition to above, the learned counsel for the petitioner also submitted that the Assessing Authority committed serious illegality in refusing the request of summoning of the record from his agent and in refusing the permission of cross-examination of the petitioner's agent, who according to the petitioner, has collected the tax amount and admitted that he has deposited the tax amount by giving Form No. ST-41.

(3.) IN addition to above, provisions of Section 9-B is also relevant which fasten the liability of tax on Principal and commission agent and the Section 9-B clearly provides that where a commission agent sells any taxable goods on behalf of the Principal, such commission agent and his Principal shall, both, be jointly and severally liable to pay tax on such sales. Sub- section (2) of Section 9-B further provides that in case the commission agent proves that he has paid the tax for the said goods, then the Principal shall not be liable to pay tax again in respect of the same transaction.