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TMI Blog1970 (2) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... amounted to Rs. 1,11,02,243 on which the company was assessed to sales tax under the Central Sales Tax Act, 1956, hereinafter called the Act. The assessment was made on the basis of the return submitted by the company to the Commercial Tax Officer. The company preferred an appeal to the Deputy Commissioner of Commercial Taxes wherein it urged that the company is not liable to be assessed to tax under the Act since the sales were effected by the company as the agent of the State Trading Corporation. The Deputy Commissioner found that the company was appointed by the State Trading Corporation as its selling agent and it has sold cement at the prices specified in the Cement Control Order to the customers who held permits from the Government au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to decide the question before us, it is necessary to set out the relevant provisions of the Act. The word "dealer" has been defined in section 2 thus: 'Dealer' means any person who carries on the business of buying or selling goods, and includes a Government which carries on such business." The words "place of business" have been defined as follows: "'Place of business' includes-in any case where a dealer carries on business through an agent (by whatever name called), the place of business of such agent." The word "sale" found in section 2(g) of the Act has been defined to mean "any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration, and includes a transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sales effected by him on behalf of the principal at his instance and such a transaction does not constitute his turnover." Referring to the definition of the word "dealer" this is what Satyanarayana Rao, J., stated at page 256: "........The definition of 'dealer' applies to a person who carries on the business of buying or selling goods. Prima facie it means a person who carries on business on his own account and buys or sells goods on his own account. That, in my opinion, is the primary meaning of the definition. It does not mean the business of the commission agent but refers to the business of buying or selling goods. When an agent buys or sells goods on behalf of a principal the business of buying or selling can only be the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty or the title in the goods. They could not therefore have effected a sale as defined in section 2(h) of the Act." But in the case of a commission agent, it was held that "the commission agent has control over or possession of the goods and he has the authority from the owner of the goods to pass the property in and title to the goods and if this is so, undoubtedly when a commission agent sells goods belonging to his principal with his authority and consent and without disclosing to the buyer the name of the owner, there is certainly a transfer of property in the goods from the commission agent to the buyer and that a business which consists in such transactions can properly be described as a business of selling goods." It was further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading Corporation or any other relevant papers pertaining thereto and in these circumstances we have set forth in the earlier paragraphs the facts relating to the agency agreement disclosed by the appellant's affidavit stated in 10 Law Reports, page 613, and Sri K. Srinivasan submits that the said facts relevant for the purpose of this appeal should be accepted and we agree with his submission." The case reported in Bagalkot Cement Company Ltd. v. State of Mysore10 L.R. 613. related to a different assessment year, namely 1960-61, and the transactions were transactions of sale within the State of Mysore. When the Deputy Commissioner has clearly found that the business of the company was not that of a broker and that the property in the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eded by the learned counsel for the company that the invoices were issued by the company, that the company had possession or custody of the goods and the company was authorised to transfer the property in the goods to the purchasers. It was also conceded that the company was registered as a dealer under the Act and it collected sales tax from the purchasers It is relevant to state that before the assessing authority the company did not contend that it was not a dealer. The company submitted its return and the tax was assessed and paid. On the facts found by the Deputy Commissioner, the petitioner was rightly held to be a dealer under the Act, and we see no reason to come to a different conclusion. In the result, the revision petition fails, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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