Agency and taxable turnover in State sales turn on control of goods, documents of title, and local delivery.

Section 14-A of the Madras General Sales Tax Act deems an agent in the State to be the dealer where a non-resident carries on buying or selling business there. On the stated facts, the petitioners did more than canvass orders: they handled railway receipts, stored goods, arranged local deliveries, and in some cases collected and remitted sale proceeds. Those activities showed control over the goods and documents of title, not a mere introduction of buyer and seller. The transfer of property was treated as occurring in Andhra State, so the sales formed part of taxable turnover there and the petitioners were liable as agents of the non-resident sellers.

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Issues: Whether the petitioners, acting for non-resident Bombay sellers in connection with sales of cotton textiles in Andhra State, were liable to tax under section 14-A of the Madras General Sales Tax Act as agents deemed to be dealers, and whether the transactions formed part of taxable turnover in the State.

Analysis: Section 14-A applies where a person carrying on the business of buying or selling goods in the State resides outside it, and deems the agent in the State to be the dealer for that business. The petitioners were found to do more than merely canvass orders: in some transactions they took delivery of goods from the railway, stored them, arranged fresh buyers, and completed delivery in the State; in others they received railway receipts, handed them over, and at times collected and remitted consideration. The printed terms of the indent forms and the handling of railway receipts and sale proceeds showed that they were concerned with the goods and the documents of title, not merely with introducing buyer and seller. The transfer of property was held to occur in Andhra State because the sellers retained control over disposal through the railway receipts and the goods were delivered to buyers only upon completion of the local transaction. The earlier authorities relied on by the petitioners were distinguished on the facts.

Conclusion: The petitioners fell within section 14-A as agents of non-resident sellers and the sales were taxable in Andhra State.

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