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Issues: Whether an auctioneer, who only advertises and conducts an auction for a principal and does not himself accept the highest bid or transfer property in the goods, is a "dealer" liable to sales tax under section 2(g) of the Madras General Sales Tax Act, 1959.
Analysis: The auction conditions and correspondence showed that the assessee was engaged only to advertise the sale and secure the best bid. The principal had authorised its architects to be present at the auction with power to accept or reject the highest offer on the spot, and the bid was in fact accepted by the principal's representative. The auctioneer did not have dominion over the property sold, did not complete the contract by accepting the bid, and did not effect delivery of the goods. Mere receipt of the sale price and issuance of the bill under special instructions from the principal did not convert the auctioneer into a person carrying on the business of buying and selling goods on behalf of the principal within section 2(g).
Conclusion: The assessee was not a dealer in respect of the disputed auction turnover and was not liable to sales tax on that transaction.
Ratio Decidendi: An auctioneer is liable as a dealer only if, on the facts of the particular transaction, he himself carries on the business of buying and selling goods on behalf of a principal and completes the sale; where he merely acts as a crier or agent to secure bids and the principal's representative accepts the offer, sales tax liability does not arise.
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