1970 (3) TMI 135 - HC - VAT and Sales Tax

Summary

The High Court of Madhya Pradesh ruled in a sales tax case that the assessee, who purchased raw cotton for mills, was acting as an agent for the mills and not as a dealer. The court rejected the argument that the assessee's investment of money and charging of interest/commission made him a principal in the transactions. The court found that the purchases were made under the mills' instructions, and the assessee was entitled to costs of Rs. 250. The reference was answered in the negative.