Commission agent turnover deductions: excise duty deduction allowed where sales were the principal's transactions.

A commission agent assessed as a dealer under the sales tax scheme was entitled to deduct excise duty from turnover taxed in his hands because the transactions were in substance those of the principal. The court construed the assessment machinery and Rule 6 in line with the real character of the sale, holding that a statutory device cannot deny deductions that would have been available to the principal. This approach avoids distorting the transaction's nature and prevents inconsistent tax consequences where the same turnover may later be assessed in the principal's hands. The deduction was therefore allowed.

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Issues: Whether a commission agent, treated as a dealer for assessment purposes under the sales tax scheme, was entitled to deduct excise duty from the turnover brought to tax in his hands when the sales were on behalf of the principal.

Analysis: The turnover represented transactions of the principal, merely assessed in the hands of the commission agent by a statutory device. Since the principal would have been entitled to deduction of excise duty, denying the same deduction to the agent would distort the scheme of assessment and could produce an inconsistent double deduction if the principal were later assessed on the same turnover. Rule 6 was therefore construed in harmony with the real nature of the transactions and the assessment machinery.

Conclusion: The commission agent was entitled to deduct excise duty from the turnover assessed in his hands.

Ratio Decidendi: Where transactions entered into by a commission agent are in substance those of the principal, the agent assessed as a dealer is entitled to the same turnover deductions as would be available to the principal, so that the assessment machinery does not alter the true character of the transaction or produce inconsistent tax consequences.

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