9911796707
TMI Blog1962 (2) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... e only question arising in these appeals by special leave from the judgment of the High Court of Andhra Pradesh Page No: 394 is whether the appellant firm can be regarded as dealer under section 18 of the Hyderabad General Sales Tax Act, 1950 (XIV of 1950) with respect to certain transactions of purchasing castor seed entered into by the Bombay Export Co. Ltd., (hereafter referred to as the company) in the former State of Hyderabad on the ground that the appellant was the agent of the company. It is common ground that the company having its registered office in Bombay had contracted to purchase 18,400 candies of castor seed in accordance with the rules of the Bombay Oil-seeds Exchange Ltd., with respect to forward contracts. The castor see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 55 in two separate proceedings upon a turnover of Rs. 4,07,599 and Rs. 26,92,401 for these respective years in respect of the purchases of castor seed made by the company in the former State of Hyderabad. The ground on which the appellant was assessed was that it was an agent of a non-resident and thus under section 18 of the Act was deemed to be a dealer within the definition of that expression in the Hyderabad General Sales Tax Act. Section 18 of the Act runs thus: "In the case of any person carrying on the business of buying or selling goods in the Hyderabad State but resident outside it (hereinafter in this section referred to as a 'non-resident') the provisions of this is whether the appellant firm can be regarded as dealer under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e price of castor seed in the Bombay market. A further clause in the agreement gave a right to the appellant to sell castor seed either by entering into a vaida transaction in Bombay or by public auction or by a private treaty. By other terms the appellant was entitled not only to commission but also reimbursement in respect of godown charges, insurance charges, hamali. carting expenses, trans- port charges, salaries of watchmen etc., with interest. The Sales Tax Authorities in Hyderabad assessed the appellant to sales tax for the years 1953-54 and 1954-55 in two separate proceedings upon a turnover of Rs. 4,07,599 and Rs. 26,92,401 for these respective years in respect of the purchases of castor seed made by the company in the former Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a financier with respect to the purchase of castor seed by the company and cannot be regarded as its agent at all. Since it was not an agent of the company it could not be deemed to be a dealer under section 18 of the Hyderabad General Sales Tax Act, 1950. The word "agent" is not defined anywhere in the Act. Since sales tax is levied on commercial transactions the word agent must be under- stood to have that meaning which is accorded to it by the Indian Contract Act, 1872. Section 182 of the Contract Act defines "agent" thus: "An 'agent' is a person employed to do any act for another or to represent another in dealings with third persons.............." It is contended on behalf of the appellant that the definition in the Contract A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an agent of the company. It is, however, contended on behalf of the appellant that unless a person is appointed an agent to buy on behalf of the principal he cannot be regarded as a dealer within the meaning of section 18 of the Hyderabad General Sales Tax Act. In support of the argument reliance was placed on the decision in Firm Raghubar Dayal v. State of U.P. A.I.R. 1955 All. 653. This was a case under the U. P. Sales Tax Act and the decision turns on the definition of the word "dealer " as contained in section 2 of that Act. The explanation to section 2(c) of the Act provides as follows: "Explanation 1.-The agent of a person resident outside Uttar Pradesh who carries on the business of buying or selling goods in Uttar Pradesh on beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the word "dealer" was defined thus: "'Dealer' means any person who carries on the business of selling goods in the State of West Bengal and includes the Government............ Explanation 2.-A factor, a broker, a commission agent, a del credere agent, an auctioneer or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who carries on the business of selling goods and who has, in the customary course of business, authority to sell goods belonging to principals is a dealer; Explanation 3.-The manager or an agent in West Bengal of a dealer who resides outside West Bengal and carries on the business of selling goods in West Bengal shall, in respect of such ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
