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TMI Blog1956 (6) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... itioners raised the two following points against the order of the Additional Commissioner: (1) That in respect of the tin imported from China for the Government of India valued at Rs. 24,50,227, the petitioners were nothing but purchasing agents of the said Government and they were paid a commission of 1 per cent. for their services in this capacity, besides the actual bank and interest charges, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agents in respect of the proposed transaction and that they would charge Rs. 5 per cwt. (which is just over 1 1/2 per cent. of the price), inclusive of their commission for their services. Though this was not confirmed in so many words by the Director-General, it was tacitly confirmed by his letter dated 5th February, 1948, in which the terms were settled at 1 per cent. as commission on the c.i.f. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the National Bank of India dated 13th May, 1948. The above evidence would tend to prove the case of the petitioners that they were acting only as purchasing agents on a commission basis for the Government of India. As against this, the learned Government Pleader pointed out that a commission agent is also a dealer if he has authority to dispose of the goods in question, though they may not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention to the general law regarding principal and agent, which is too well-known to need reiteration. The conduct of the petitioners in agreeing to import tin on behalf of the Government for a commission of 1 per cent. only, when the rate of sales tax was very much higher than this, would go to show that they never acted in any other capacity than that of purchasing agents. In these circumstances, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent railways and that debits were raised against the accounts of the railways. The mere form of the contract is not material so long as it can be shown that the goods were actually delivered to the railways for their consumption and that payment was made out of the railway accounts. As sales to Railway administrations were exempted from sales tax at the time in question, the second contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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