Dealer status under sales tax law applies where a co-operative society effects sales as the agency through which members' produce is sold.

A co-operative society that arranged sale of its farmer-members' produce, issued sale documents, realised commission, and had authority to conclude bargains on behalf of sellers was treated as a dealer under the U.P. Sales Tax Act. The statutory definition of dealer, read with its explanation, covers mercantile agents such as commission agents and auctioneers who carry on buying or selling on behalf of principals or through whom goods are sold or purchased. Even without strict dominion over the goods as a selling agent, the society operated as the agency through which the sales were effected, so the issue was answered in the affirmative against the assessee.

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Issues: Whether the co-operative society, in relation to transactions of its farmer-members, could be deemed to be a dealer under the U.P. Sales Tax Act.

Analysis: The definition of "dealer" and its explanation extend to a mercantile agent, including a factor, broker, commission agent, arhti, del credere agent or auctioneer, who carries on the business of buying or selling goods on behalf of principals or through whom goods are sold or purchased. The society arranged the sale of members' produce, issued sale-related documents, realised commission and, on the facts found, had authority to conclude the bargain on behalf of the seller. Even if it had no dominion over the goods in the strict sense of a selling agent, it functioned as the agency through which the sale was effected.

Conclusion: The society was a dealer within the meaning of the Act and the question was answered in the affirmative, against the assessee and in favour of the department.

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