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TMI Blog1975 (11) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant-company is a dealer within the meaning of section 2(b) of the Central Sales Tax Act, 1956-hereinafter referred to as the Central Act, liable to pay sales tax thereunder. The appellant, Bagal Kot Cement Co. Ltd., is a manufacturer of cement. For the period 1st April, 1961, to 31st March, 1962, it filed a return before the assessing authority showing a total turnover of Rs. 1,11,02,243. The entire sum was shown as taxable turnover on which an amount of Rs. 2,25,317.55 had been collected and paid as tax. No claim was made on behalf of the appellant before the assessing authority that it was not liable to pay any sales tax. The authority accepted the return and assessed the tax as per the appellant's figure. It appears the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce in the appellant's argument. After having realized the sales tax from the various customers and voluntarily and ex contractu paid it as per the return submitted, it was ill-advised to take an unsustainable stand of its not being liable to pay sales tax under the Central Act. There cannot be any doubt that the sales of cement made during the period in question in the course of inter-State trade were exigible to sales tax under the Central Act. The question for consideration is who was liable to pay it? The liability was of the dealer as defined in section 2(b). If the appellant-company was the dealer which had made the sales as defined in section 2(g), then the liability to pay the tax under the charging section 6 was its. If it was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent produced at the works of Bagal Kot Cement Co. Ltd. and to arrange for the distribution of such cement in accordance with such directions as may be issued by the Corporation from time to time. 2.. The agents may enter into contracts for sale of cement on behalf of the Corporation and shall, inter alia, arrange for the despatch of cement to the consignees, submit bills for the sales, receive payments in connection therewith and do all acts and things that may be necessary to handle effectively, on behalf of the Corporation, all contracts of sale of cement entered into as aforesaid. 7.. (a) The agents shall sell cement at such prices as may be indicated by the Corporation from time to time. (b) The agents shall collect State or inter-St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eement only the difference of price after deducting the company's remuneration was to be credited to the Corporation's account. Section 2(b) of the Central Act reads as follows: "'Dealer' means any person who carries on the business of buying or selling goods, and includes a Government which carries on such business." "Sale" within the meaning of clause (g) means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration. "Sale price" under clause (h) means the amount payable to a dealer as consideration for the sale of any goods. On the facts stated above it is abundantly clear that sale was made by the appellant- company as it effected transfer of property in the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pacity as mercantile agent; but he must not be a mere servant or shopman." In para 713, is stated: "A del credere agent is one who, usually for extra remuneration, undertakes to indemnify his employer against loss arising from the failure of persons with whom he contracts to carry out their contracts." In the judgment under appeal the High Court repelled the stand of the appellant relying upon the decision of a Full Bench of the Madras High Court in Kandula Radhakrishna Rao v. Province of Madras represented by the Collector of West Godavari, Eluru [1952] 3 S.T.C. 121 at 135; A.I.R. 1952 Mad. 718 at 723, Col. 2. Referring to the identical definition of the "dealer" in the Madras Act, Rajamannar, C.J., delivering the judgment on beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclusive definition would show that it was the Corporation which was carrying on the business through the appellant-company as its agent and for the purpose of the Central Act the place where the business was carried on by the company as the Corporation's agent would be the place of business of the Corporation. On the other hand, the learned Additional Solicitor-General 11 pointed out that if the appellant was the dealer within the meaning of section 2(b) then it was not the Corporation which was carrying on the business through it as an agent to attract the definition given in clause (dd). In our judgment it was the appellant-company which carried on the business of selling cement although it was acting as selling agents of the Corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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