Finality of refused tax reference and commission agent liability under section 9-B depend on principal's taxable status.

Questions refused to be referred by the Board of Revenue could not be reopened in revision because the remedy to challenge that refusal had not been exercised within the prescribed time, and a later procedural amendment did not revive a matter that had attained finality. Under section 9-B of the Rajasthan Sales Tax Act, liability of a commission agent depends on the principal being liable to tax; where the sales were of ghee belonging to agriculturists and no material showed that the principals crossed the taxable turnover limit, the turnover was not taxable in the assessee's hands.

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Issues: (i) Whether questions refused to be referred by the Board of Revenue could still be agitated in revision after the petitioner failed to challenge that refusal within the prescribed time. (ii) Whether turnover of Rs. 70,000 arising from sales made by the assessee as a commission agent of agriculturists was liable to tax under section 9-B of the Rajasthan Sales Tax Act, 1954.

Issue (i): Whether questions refused to be referred by the Board of Revenue could still be agitated in revision after the petitioner failed to challenge that refusal within the prescribed time.

Analysis: The right to challenge the refusal to refer questions under the then existing section 15 had to be exercised by moving the High Court within the prescribed period. The petitioner did not invoke that remedy against the Board of Revenue's refusal to refer the other questions. The later amendment and the transitory provision were held to be procedural and not intended to reopen a refusal which had already attained finality.

Conclusion: The refused questions could not be reopened and were not permissible to be agitated in the revision.

Issue (ii): Whether turnover of Rs. 70,000 arising from sales made by the assessee as a commission agent of agriculturists was liable to tax under section 9-B of the Rajasthan Sales Tax Act, 1954.

Analysis: Section 9-B fastens liability on a commission agent and the principal only where the principal is himself liable to tax. The turnover in question was found to relate to ghee belonging to agriculturists and sold by the assessee as commission agent. No material showed that the individual principals had taxable turnover exceeding the statutory limit. In the absence of such material, tax liability could not be imposed on the assessee under section 9-B.

Conclusion: The turnover of Rs. 70,000 was not taxable in the hands of the assessee under section 9-B.

Final Conclusion: The revision failed and the order of the Board of Revenue was upheld, resulting in dismissal of the petition.

Ratio Decidendi: A refused reference that is not challenged within the prescribed time attains finality and cannot be reopened by a later procedural amendment, and a commission agent is liable under section 9-B only to the extent the principal is liable to tax.

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