9911796707
TMI Blog1979 (12) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... he dealer?" 2.. The relevant period of assessment is Diwali 1965-66. The mode of business carried on by the assessee in respect of the transactions under reference is disclosed fully in the order of the Deputy Commissioner dated 29th November, 1968, which forms part of the statement of case. The assessee functions as a commission agent within the market yard of Agricultural Produce Market, Sagar. The cultivators bring their produce to the fad of the assessee. Fad, we are informed, is a piece of land in the mandi in occupation of the assessee as licensee. The produce so brought by the cultivators is sold by auction. The bid is accepted by the cultivators who remain present till the goods are sold. The buyers remove the goods from the fad. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated above. 3.. The definition of "dealer", as it stood at the relevant time, reads as follows: "2. (d) '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) ........................ (ii) ........................ (iii) a commission agent, a broker, a del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal. " 4.. The view taken by the Deputy Commissioner that the assessee was a dealer on the ground o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was carrying on the business of buying, selling, supplying or distributing the goods on behalf of the cultivators. The assessee made available his fad to the cultivators for stocking their goods. The assessee helped them with his technical knowledge of the market. The assessee had no dominion over or custody of the goods. The sale was by the cultivators themselves who accepted the bids of the buyers. The goods were removed by the buyers from the fad. The assessee recovered the price from the buyers and paid over the same to the cultivators after retaining the commission. These facts do not bring the assessee within the definition of "dealer". The learned Government Advocate submitted that on the facts it has to be held that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee in the transactions with which we are concerned did not directly or indirectly supply or distribute goods to the buyers. The sale of the goods was made by the cultivators who were the owners of the goods and they supplied the goods directly to the buyers because they remained present at all material times when the transaction took place. The learned Government Advocate also relied upon the case of Madhya Pradesh State Co-operative Marketing Society v. Commissioner of Sales Tax[1971] 27 S.T.C. 45. This case is distinguishable on facts. In this case it was found that the assessee had complete dominion and control, and full authority to sell the goods and was, therefore, a dealer. The facts here, as noticed above, are entirely differen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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