Dealer definition under sales tax law covers a co-operative society selling members' goods for commission through its own control.

A co-operative society that regularly sells members' foodgrains for commission, issues receipts in its own name, arranges the sales, and exercises control over pledged goods falls within the wide definition of "dealer" under section 2(c) read with Explanation I of the U.P. Sales Tax Act. The fact that members' consent was needed for sale did not exclude the society where, in substance, it was carrying on the business of selling goods through its own commercial control. On the facts stated, the society was treated as a dealer for sales tax purposes.

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Issues: Whether a co-operative society selling foodgrains of its members for commission, and finalising the sales while issuing receipts in its own name, falls within the definition of "dealer" under section 2(c) read with Explanation I of the U.P. Sales Tax Act.

Analysis: The definition of "dealer" is wide and includes not only persons carrying on the business of buying or selling goods, but also a society which sells goods and a commission agent who carries on such business on behalf of principals or through whom goods are sold or purchased. The society regularly conducted sales as a business, arranged the sales, issued receipts in its own name, charged commission, and exercised control over the goods pledged with it. The fact that the members' consent was required for sale did not take the society outside the statutory definition where it was in substance carrying on the business of selling goods for commission.

Conclusion: The society was a dealer within section 2(c) and Explanation I of the U.P. Sales Tax Act. The reference was answered in the affirmative, against the assessee and in favour of the department.

Final Conclusion: The assessee was held liable to be treated as a dealer for sales tax purposes on the facts found.

Ratio Decidendi: A person or society that regularly carries on the business of selling goods for commission, and finalises sales through its own control over the goods, falls within the statutory definition of dealer even if the owners' consent to sale is required.

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