Selling agent turnover in yarn sales was not second sale; provisional invoices did not create a purchase for exemption.

Yarn turnover was held not to constitute second sales eligible for exemption because the contractual terms showed the assessee acted only as a selling agent for the mills. The assessee took delivery on provisional invoices and made provisional payments, but the yarn was to be sold on the mills' account at prices fixed by the mills. Those features showed that the provisional invoices were only for interim payment and did not create an actual sale from the mills to the assessee. The disputed turnover was therefore treated as the first sale by the assessee as agent, and exemption was denied.

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Issues: Whether the disputed turnover represented second sales of yarn eligible for exemption, or sales effected by the assessee as a selling agent on the mills' account.

Analysis: The contract between the assessee and the mills showed that the assessee was appointed only as a selling agent for the yarn produced by the mills. The assessee took delivery of the stock after making only provisional payments on the basis of provisional invoices, while the yarn was to be sold on the mills' account and at the price fixed by the mills. These terms indicated that the provisional invoices were only for interim payment and did not establish an actual sale from the mills to the assessee.

Conclusion: The disputed turnover was not second sales eligible for exemption. It was the first sale by the assessee as selling agent, and the assessee's claim failed.

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