Auctioneer not treated as dealer where he only facilitates bids and does not conclude sales under sales tax law.

An auctioneer who merely facilitates auctions for Government departments, without authority to accept or reject bids or complete sales, is not a "dealer" under the U.P. Sales Tax Act. The deeming provision for auctioneers applies only where they carry on the business of buying or selling goods on behalf of the principal or otherwise bring about the sale. Where departmental representatives conclude the sale and receive the proceeds directly, the auctioneer only connects bidders with the department and does not himself effect the sale. On those facts, sales tax liability did not arise on the auction transactions.

---

---

Issues: Whether an auctioneer who merely conducts auctions on behalf of Government departments, without authority to accept bids or conclude sales, is a 'dealer' liable to sales tax under the U.P. Sales Tax Act.

Analysis: Under clause (c) of section 2 of the U.P. Sales Tax Act, a dealer is a person carrying on the business of buying or selling goods, and the explanation deems an auctioneer to be a dealer only where he carries on such business on behalf of his principal or through whom the goods are sold or purchased. On the facts found, the assessee had no authority, general or special, to accept or reject bids, the departmental representatives alone completed the sales, and the sale proceeds were received directly by the Government. The assessee merely brought intending purchasers into contact with the departmental staff and facilitated the auction process. In such circumstances, he did not himself bring about the sale and the deeming provision did not apply.

Conclusion: The assessee was not a dealer within the meaning of the U.P. Sales Tax Act and was not liable to sales tax on the auction transactions.

---