Dealer status under sales tax law depends on business of buying or selling goods, not mere advertising agency work.

An assessee-company acting as an advertising agent was found not to be a dealer under the Bombay Sales Tax Acts because the documents and admissions did not show that it purchased blocks on its own account. The contract forms, newspaper orders, block orders and bills were equally consistent with either direct purchase or procurement for advertisers, but they did not establish the business of buying or selling goods. The receipt from block-makers was treated as remuneration for technical service and assistance, not commission for trading in goods. Mere agency in advertising work therefore did not satisfy the statutory definition of a dealer.

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Issues: Whether the respondent-company was a dealer within the meaning of section 2(c) of the Bombay Sales Tax Act, 1946, and section 2(6) of the Bombay Sales Tax Act, 1953, on the basis that it purchased blocks as principal or, alternatively, as a commission agent carrying on the business of buying or selling goods.

Analysis: The assessee's own application and the documents relied upon showed that it acted as an agent for advertisers in arranging and releasing advertisements. The contract forms, newspaper orders, block orders and bills did not establish that the blocks were purchased by the assessee on its own account; at the highest, they were consistent with either purchase by the assessee or procurement on behalf of advertisers. On the admitted facts, the receipt from block-makers was treated as remuneration for technical service and assistance, not as commission for buying goods for advertisers. The statutory definition required the carrying on of the business of buying or selling goods, and mere agency for advertising work did not satisfy that requirement.

Conclusion: The respondent-company was not a dealer under either Act and was not liable to be treated as carrying on the business of buying or selling goods on the admitted facts.

Ratio Decidendi: A person is a dealer only if he carries on the business of buying or selling goods; acting merely as an advertising agent, or receiving remuneration for technical assistance in procurement of materials for a principal, does not by itself amount to such business.

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