TMI Blog1960 (11) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... re not warranted by the Act, and that they should be quashed by appropriate writs or directions from this court under Article 226 of the Constitution. 2.. The contention on behalf of the State is that such assessments are proper and are justified by section 18 of the General Sales Tax Act, 1125. That section reads as follows: "In the case of any person carrying on the business of buying or selling goods in the State but residing outside it (hereinafter in this section referred to as a 'non-resident'), the provisions of this Act shall apply subject to the following modifications and additions, namely: (i) In respect of the business of the non-resident, his agent residing in the State shall be deemed to be the dealer. (ii) The agent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d., Madras v. State of Madras[1958] 9 S.T.C. 769., the Madras High Court dealt with section 14-A as follows: "It is clear from the provisions of this section that it is really the non-resident principal that is assessed to tax and the agent is deemed to be a dealer in respect of his business as a convenient representative for assessment, levy and collection of the tax. The assessment is with reference to the sales on the principal's account and the rates of tax are those applicable to him. The agent is given a statutory right to retain moneys of the principal in his hands a sum equal to the tax assessed or paid. Under section 14-A (ii) the agent is made liable to pay the tax irrespective of the fact whether the amount of turnover of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes against the conclusion we have reached. 6.. It follows that the assessments impugned in these petitions have to be quashed. We do so. 7.. Various other contentions are raised in these petitions. It is unnecessary to consider them in this judgment and they are left open for future determination. 8.. We make it clear that the quashing of the assessments will not preclude the Department from making fresh assessments according to law. It was agreed that if and when such assessments are made no question of limitation will be raised and we must record that the said agreement has influenced us in interfering at this stage without leaving the petitioner to his normal remedies under the Act by way of appeal and revision. 9.. The petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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