The question referred is Whether on the facts and in the circumstances of the case, the assessee i.e., Assam Cooperative Apex Marketing Society Ltd., is entitled to exemption under Section 81 1 c in respect of their income arising out of procurement of paddy and other agriculture produce?
1 1989 1 SCC 345 1989 SCC Tax 84 1988 Supp 3 SCR ORDER This appeal is preferred against the judgment of the Gauhati High Court answering the question referred to it against the assessee.
During the accounting year relevant to the said assessment year, the appellant The Assam Cooperative Apex Marketing Society Ltd., Assam was appointed as the procuring agent for paddy by the Government under a scheme evolved by the Government of Assam and companytained in its proceeding dated November 23, 1962.
55/75 CE dated March 1, 1975 issued under Rule 8 1 of the Central Excise Rules, 1944.
The membership of the assessee society is divided into three classes as follows A Class companysisting of companyperative institutions B Class companysisting of individual cultivators and sympathisers C Class companysisting of traders, companymission agents etc.
The question for companysideration before the High Court was whether Food Flavours, Concentrates and essences are the food products and food preparations in terms of the Exemption Notification No.
The writ petition filed by the appellant was dismissed by the High Court.
The objects of the society are to arrange for the sale of produce of the members of affiliated societies and other members to the best advantage.
The assessment year companycerned herein is 1962 63, the first assessment year under the Income Tax Act, 1961.
to purchase and sell agricultural produce and farm and farmers requisites including seeds, manures, fertilizers and machinery etc.
The assessee is a Society registered under the Assam Cooperative Societies Act, 1949.
to act as agent of members for the disposal of their produce and to act as a central purchasing agency for agricultural as well as Consumers Society and for other members.
This plea was negatived by the Income Tax Officer but on appeal, the Appellate Assistant Commissioner agreed with the assessee.
The appeal was allowed, whereupon the assessee obtained the reference aforesaid.
The authorities under the Central Excise Act answered the question in the negative.
The State Government.
The Revenue went up in appeal to the Tribunal.
