V.K. Jain, J.

By this common judgment, we will dispose of all the six matters referred above.

STA. 3/2008 to 7/2008 are directed against a common order passed by the Appellate Tribunal, Value Added Tax, Delhi, whereby it upheld the order passed by the Appellate Authority. The following substantial questions of law were framed for consideration in these appeals:-

(i) "Whether the Tribunal was correct in law in holding that an agent to whom the goods are transferred on consignment basis, is covered under the definition of 'dealer' under Section 2(j) of the Delhi Value Added Tax, 2004 and the transfer of goods to such an agent for consideration, whether received in advance or subsequently in consequence of sale of goods, shall amount to sale and be taxed accordingly ?

(ii) Whether the Tribunal was correct in law in holding that the appellant in affecting sale of goods through its consignment agent who has paid due tax on the said sales to the Government, he is also liable to pay tax under the DVAT Act, 2004 ?"

Since the questions, as framed earlier, do not reflect true controversy involve in the appeals, we have reframed the question as under and have heard the parties accordingly :

(i) "Whether in the facts and circumstances of the case, the Tribunal was correct in law in holding that the appellant was liable to pay VAT in respect of goods transferred by it to its agent on consignment basis ?"

The brief facts, as noted by the Tribunal, are that the appellant company is engaged in sale of electronic goods and has appointed a Consignment Agent in Delhi. In the monthly returns filed by it, the appellant disclosed that certain goods, on which credit of input tax had been claimed by it, were physically transferred by it to the Consignment Agent, for sale through him. The Consignment Agent sold the goods of the appellant under a written agreement which provided that he would sell the goods on behalf of the appellant and would deposit the tax on its behalf. The VAT Officer rejected the claim of input tax credit and levied tax on the value of the goods transferred to the Consignment Agent. The order of the VAT Officer was upheld by the Appellate Authority, which dismissed the appeal and also upheld the notice of assessment of penalty, issued to the appellant under Section 33 Delhi Value Added Tax Act. While dismissing the appeal, the Tribunal was of the view that Value Added Tax is to be levied on the value of 'every' transfer, when the goods changes hands from the original producer to the ultimate consumer.

In exercise of the power conferred upon him under Section 85 of Delhi Value Added Tax Act, 2005, the Commissioner of Value Added Tax issued a Notification No. F.4(3)/P-II/VAT/2005/1158 dated 2.12.2005 clarifying therein as under :

1. "The scheme of DVAT envisages taxing different stages in the production and distribution chain and allows set off for taxes paid at the earlier stages. Unlike the Central Sales Tax, 1956 wherein there is provision for transfer of goods by the dealer to his branch or his agent otherwise than by way of sale, in Delhi Value Added Tax 2004 there is no similar provision for intra-state transfer of goods to the branch or an agent without payment of tax. Under the DVAT Act, even an agent to whom goods are transferred on consignment basis are covered under the definition of "dealer" and transfer of goods to an agent for consideration, whether received in advance or subsequently on conclusion of sale of goods shall amount to sale and shall be taxed accordingly. However, the agent shall be eligible to claim input tax credit for taxes paid to the Principal. To sum-up all intra-state transfer of goods to an agent within Delhi on consignment without payment of tax is not allowed under the provisions of DVAT Act, 2004 and such intra-state transfers are covered under the definition of sale and are liable to tax as per provision contained in DVAT Act, 2004 from the day the DVAT Act came into force.

2. Transfer