9911796707
TMI Blog1962 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... led by Messrs G. Gilda Taxtile Agency, Vijayawada, against the State of Andhra Pradesh. They are directed against a common order of the High Court of Andhra Pradesh in two revisions filed under section 12-B(1) of the Madras General Sales Tax Act, 1939 (IX of 1939). The matter relates to the levy of sales tax from the appellant on its turnover for the years 1954-55 and 1955-56. The appellant was an agent of several non-resident principals, on whose behalf it booked orders and dealt with the indents, There were agreements between the non-resident principals and the appellant, and three such agreements contained in letters have been produced as instances, and are marked exhibits A-3, A-3(a) and A-3(b). Under these agreements, the appellant was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived the railway receipts from the outside principal, handed them over to the buyers and sometimes collected and transmitted the amounts to the outside principal. The period involved is covered by the Sales Tax Validation Act, 1956 (7 of 1956), and no question under the Constitution arises. The only question is whether the appellant comes within section 14-A of the Madras General Sales Tax Act, and is liable to tax as a dealer. It may be pointed out that the appellant did not produce any correspondence between it and the non-resident principals or the covering letters which must have been sent along with the railway receipts. The Tribunal under the Madras General Sales Tax Act, therefore, came to the conclusion that the railway receipts w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent in respect of his business in the State by reason of the turnover thereof being less than the minimum specified in section 3, sub-section (3), he shall be entitled to have the amount of the tax or taxes paid by his agent, refunded to him on application made to the assessing authority concerned, or where more than one such authority is concerned, to such one of the authorities as may be authorised in this behalf by the State Government by general or special order. (v) Such application shall be made within twelve months from the end of the year in which payment was made by or on behalf of the non- resident of the tax or taxes or any part thereof." The section makes the agent liable fictionally as a dealer in the circumstances laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar finding by the High Court that the non-resident principals were carrying on the business of selling in Andhra Pradesh. The High Court has observed that if the non-resident principals took out railway receipts in their own names, thereby manifesting their intention to remain the owners and to retain the control over the goods, the sales must be taken to have been completed or to have taken place in the State of Andhra Pradesh. From this, the High Court came to the con- clusion that the non-resident principals were doing business of selling in Andhra Pradesh. The High Court pointed out that inasmuch as the appellant after securing the orders received the railway receipts from the sellers and handed them over to the buyers and sometimes col ..... X X X X Extracts X X X X X X X X Extracts X X X X
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