Aggregation of principals' turnover rejected for commission agent where statute lacked express clubbing provision.

A commission agent acting for disclosed principals could not be assessed to turnover tax on the aggregated turnover of multiple principals under section 6B of the Bengal Finance (Sales Tax) Act, 1941. The statutory definition of "dealer" covered such an agent, but the definition of "turnover" did not expressly permit clubbing of sales made on behalf of others. The agent's liability remained co-extensive only with each principal individually, and the absence of an express provision authorising aggregation was decisive. Reimbursement rights against principals did not justify assessment on a combined basis. The impugned assessments were therefore unsustainable.

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Issues: Whether, for the purpose of turnover tax under section 6B of the Bengal Finance (Sales Tax) Act, 1941, the turnover of several disclosed principals could be aggregated and assessed in the hands of a commission agent, and whether the agent's liability could exceed the liability attributable to each principal individually.

Analysis: The definition of "dealer" included a commission agent having authority to sell goods belonging to principals, but the definition of "turnover" did not contain words extending it to sales made on account of others. The statutory scheme therefore did not support aggregation of the turnovers of different principals in the hands of the agent. The relationship of principal and agent remained governed by the ordinary principle that the agent acts qua a particular principal and his liability is co-extensive only with that principal's liability. The absence of an express provision authorising clubbing, unlike the position in the Andhra Pradesh legislation considered in the cited decisions, was material. The Court also held that the fact that the agent might seek reimbursement from principals could not justify assessing him on an aggregated basis, especially where individual principals might not themselves be taxable.

Conclusion: The turnover of the different disclosed principals could not be clubbed for assessment of the agent under section 6B, and the impugned assessments were unsustainable.

Ratio Decidendi: In the absence of an express statutory provision, a commission agent acting for disclosed principals cannot be assessed to turnover tax on the aggregated turnover of multiple principals, because the agent's tax liability is co-extensive only with each principal individually.

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