TMI Blog1981 (9) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ther held that an agent cannot make any sale or purchase to his principal. Therefore, when purchases were made by the assessee on behalf of its ex-U.P. principals it was purchased or sold in its own capacity. Reliance was placed on Panna Lal Babu Lal [1956] 7 STC 722. It was also held that once a registered dealer undertakes to carry out his obligation to constituents outside the State such purchases made by such dealer are in the course of inter-State trade or commerce. Reliance for this was placed on Himatsingka Timber Co. Ltd. v. State of Orissa [1966] 18 STC 235 (SC). The Tribunal found that as the assessee had purchased oil-seed and foodgrain from registered dealers without disclosing to them the name of its ex-U.P. principal, it shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 408; 1979 UPTC 809 was squarely applicable. The reasoning of the Tribunal based on certain decisions appears to suffer from fallacy. The first decision relied upon by it was Panna Lal Babu Lal's case [1956] 7 STC 722. In that decision it was held that a commission agent does not sell goods to its principal. There can hardly be any dispute that it is settled that commission agent is nothing but an extended hand of a principal. Any transaction which he carries on behalf of the principal he is not a purchaser or seller. He gets commission for certain obligations which he undertakes to perform on behalf of his principal. To infer from this that as a commission agent cannot sell the goods to the principal the purchases made by him in the loca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent which is covered by section 3 of the Central Sales Tax Act. As regards form III-C(1) there can be no doubt that it furnishes evidence that the assessee has purchased it. But that alone is not sufficient. If the transaction carries the impress of being in the course of inter-State trade and commerce then it does not cease to be so merely by the act of the assessee of filing these forms. It was never disputed by the department that these were commission agent's purchases. Once this is not disputed then the admission of the assessee by furnishing of these forms is not detrimental in any manner from the real nature of the form that it was in the course of inter-State trade and commerce. In the result the revision succeeds and is allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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