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TMI Blog2001 (12) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural produce of its members. For the assessment years 1992-93, 1994-95 and 1995-96, the assessing officer levied purchase tax on the society, on the groundnut grown by its members and sold at the auctions held by the assessee, even after describing the position of the society as "agent on behalf of the agriculturist principals for commission". The assessing authority appears to have enter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (i) groundnut or peanut (a) At the point of first sale in the (Arachis hypogaea) State in respect of goods purchased from outside the State. (b) At the point of first purchase in the State in respect of goods not falling under item (a) above." The very fact that the society is the agent of its members, who are agriculturists and who entrust their produce to the society to market the same w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not translate into one of sale by principal to its agent. Agency implies the existence of a relationship between a principal and a person who is authorised to act on behalf of such principal, being called as the agent. The title passed on to the buyer is the title that vests in the principal which the agent is authorised to transfer by reason of the entrustment to the agent by the principal for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner has also challenged the validity of Act No. 31 of 1992. That question does not require our consideration in this proceeding. It is not necessary for us to go into the validity of the Act as, even if we assume that the Act is valid, the assessee cannot be taxed, as the assessee is not the purchaser and the point of levy of tax is the first purchase. Petitions allowed. - - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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