TMI Blog1954 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... nd outside the State. The Sales Tax Officer granted exemption on all sales outside the State, but disallowed the claim on sales which took place within the State, holding that the respondent being the principal was liable to pay tax irrespective of the fact whether or not his agent had taken out a licence under section 9 of the Mysore Sales Tax Act. The Deputy Commissioner rejected the appeal on the ground that the commission agent selling goods on behalf of the principal has not obtained licence under section 9 of the Act and that in the absence of licence under section 9 of the Act by the commission agent, both the principal and the commission agent become liable to pay tax. The respondent raised the same points in a revision petition f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd recovered from an unlicensed agent and the department should not, on any account, look to the principal for payment of the tax. We are unable to agree fully with the contentions advanced. Section 3 obliges every dealer to pay tax on his total turnover for the year and the dealer is defined under section 2(d) as meaning any person who carries on the business of buying or selling goods. Therefore a person whether he himself sells direct or through an employee or through a commission agent or through other means comes under the definition of a dealer irrespective of the nature of the machinery he employs to sell the goods. (Vide In re K.T. Pappanna Rowther(1)). An agent may be a principal in respect of any transaction done on his own accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saction is exempt by reason of payment through an agent or otherwise. The inclusion in the turnover of sales through a licensed agent will relieve the agent from liability, but the principal cannot escape taxation by reason of omission of such sales in his annual turnover. From the foregoing discussion the answer to the first point in the statement of case is that the principals are liable for taxation for sales through licensed agents, even though the principals have not collected sales tax and have not included the said commission sales in their turn- over. The sales effected by agents who have not been licensed under section 9 can claim no exemption from tax. They are taxable as any other dealer and the principal who sells his goods to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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