TMI Blog1972 (4) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... July, 1957, to 30th June, 1958, and the other to the period from 1st July, 1958, to 30th June, 1959. In the latter period, a part of it from 1st July, 1958, to 31st March, 1959, is covered by the old C.P. and Berar Sales Tax Act, 1947. 3.. The question referred is whether, in the circumstances of the case, under the sales tax law before 1st April, 1959, or after 1st April, 1959, in respect of sale of cotton, the assessee, Tahsil Co-operative Agricultural Marketing Association Private Ltd., Khandwa, was not a dealer and was not liable to pay sales tax. The exact words of the question referred to us are as follows: "Whether, on the facts and circumstances of the case, under the State sales tax law applicable before 1st April, 1959, as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Marketing Society could be called a dealer and assessed to sales tax for sales effected by it. In this case, the Marketing Society has appointed the Tahsil Association as its sub-agent and sales are effected by that Association. The sales tax department assessed the Tahsil Association to sales tax on the sales effected by it. The contention of the Tahsil Association was that it was merely acting as an employee of the main Marketing Society and was, therefore, not liable to pay sales tax on the sales effected by it. This contention was not accepted by the department and the Board of Revenue also agreed with the sales tax department that the Tahsil Association was liable to be assessed to sales tax. On an application by the Tahsil Assoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n given in the new Act of 1958, a dealer has been defined as follows: "'Dealer' means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration and includes- (i) the Central or a State Government or any of their departments, a local authority, a company, an undivided Hindu family or any society (including a co-operative society), club, firm or association which carries on such business; (ii) a society (including a co-operative society), club, firm or association which buys goods from, or sells, supplies or distributes goods to, its members; (iii) a commission agent, a br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention of the learned counsel is that since the final disposal of the goods was subject to the approval of the Marketing Society, the Tahsil Association cannot be said to be a dealer which is really selling the goods. We are unable to agree with this contention. The Marketing Society advances money to the Tahsil Association and in order to ensure that the money is not lost and also to ensure that fair price is received by the growers, this control is exercised by the Marketing Society. Mere exercise of control by the Marketing Society does not take away the right of the Tahsil Association to ultimately sell the goods, whether it is with the approval of the Marketing Society or not. The seller of the goods is the Tahsil Association and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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