Commission agency transactions and sales tax liability depend on the real nature of the contract, not the label used by parties.

Sales tax liability in commission agency transactions depends on the true character of the arrangement, which must be ascertained from the contract, its terms, and surrounding material rather than the label used by the parties. A commission agent may, on the facts, act in a dual capacity and effect a sale to his own account, but the question remains a mixed issue of fact and law requiring objective scrutiny of accounts and documents. A revisional authority exercising quasi-judicial power must record a reasoned factual finding on the material before it; a general approach is insufficient. The revisional order was set aside and the matter remitted for fresh consideration.

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Issues: Whether the turnover arising from transactions handled by the commission agent was liable to sales tax as a sale to self under the sales tax law, and whether the revisional order could stand without a proper factual evaluation of the material on record.

Analysis: The legal position was that the real character of the transaction must be gathered from the contract, its terms and surrounding material, and the nomenclature used by the parties is not decisive. A commission agent may, depending on the facts, act in a dual capacity and transfer goods to his own account, in which event the transaction may amount to a sale. At the same time, whether a transaction is a sale or an agency arrangement is a mixed question of fact and law, requiring an objective examination of the relevant accounts and documents. The revisional authority was expected to deal with the factual materials in detail and reach a proper quasi-judicial finding; a general approach was insufficient.

Conclusion: The turnover issue could not be finally sustained on the existing revisional order, and the matter required fresh objective consideration after giving the assessee an opportunity.

Final Conclusion: The appeals succeeded and the revisional order was set aside, with the matter remitted for reconsideration in accordance with law.

Ratio Decidendi: In determining sales tax liability in commission agency transactions, the true nature of the arrangement must be ascertained from the contractual terms and surrounding facts, and a revisional authority exercising quasi-judicial power must record a reasoned factual finding on the material before it.

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