Dealer status under sales tax law depends on control over stock, sales, payments and authority to transfer title.

A person is treated as a dealer under the U.P. Sales Tax Act when the totality of facts shows business activity involving buying and selling goods, not merely brokerage or weighing work. Here, the presence of business premises, stock of principals' goods, issuance of sale documents, advances to cultivators, control over sale timing, and handling of payment and title transfer indicated authority to deal in the goods. In a sales tax reference, the High Court may consider the statement of case, including findings and materials from assessment and appellate proceedings, and is not confined to the revising authority's order in isolation.

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Issues: (i) Whether, on the facts found, the assessee was a dealer within the meaning of section 2(c) of the U.P. Sales Tax Act. (ii) Whether, in answering the reference, the High Court could look to the findings and materials forming part of the statement of case, including those recorded by the assessing and appellate authorities.

Issue (i): Whether, on the facts found, the assessee was a dealer within the meaning of section 2(c) of the U.P. Sales Tax Act.

Analysis: The statutory definition required carrying on the business of buying and selling goods. The surrounding facts showed that the assessee had business premises, kept stocks of principals' goods, issued parcha level, made advances to cultivators, sold goods when favourable prices were secured, and made payments after completion of transactions. These circumstances, taken together, indicated that he had authority to deal with the goods and to pass title, which was inconsistent with the position of a mere broker or weighman.

Conclusion: The assessee was a dealer as defined by the U.P. Sales Tax Act, and the finding was against the assessee and in favour of the department.

Issue (ii): Whether, in answering the reference, the High Court could look to the findings and materials forming part of the statement of case, including those recorded by the assessing and appellate authorities.

Analysis: In a sales tax reference, the question of law is decided on the basis of the statement of case, which includes the judgments and findings of the lower authorities and other necessary documents. The revising authority's order is not to be read in isolation where the earlier findings form part of the materials referred for decision. Since the revising authority had affirmed the lower findings, absence of separate detailed findings by it did not prevent the High Court from relying on the full record before it.

Conclusion: The High Court was entitled to consider the findings and materials from the assessment and appellate proceedings.

Final Conclusion: The reference was answered in the department's favour, and the assessee's challenge to his classification as a dealer failed.

Ratio Decidendi: Where the totality of facts shows that a person maintains stock, makes advances, issues sale documents, and controls the sale and payment process with authority to transfer title, he is carrying on the business of buying and selling and is liable to be treated as a dealer under the sales tax law.

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