Commission agent treated as dealer under sales tax law, so agency transactions remained liable to purchase and turnover tax.

A commission agent acting for growers and producers falls within the broad statutory definition of "dealer" under the Kerala General Sales Tax Act, 1963, because the definition expressly covers persons supplying or distributing goods for commission and includes commission agents. As a result, transactions carried out through that agency relationship do not escape tax merely because of their form. The turnover arising from such dealings was therefore liable to purchase tax under section 5A, and turnover tax under section 5(2A) where the prescribed turnover limit was crossed. The challenge failed because the agency character of the transactions did not take the assessee outside the tax net.

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Issues: Whether a commission agent acting for growers and producers is a "dealer" within the meaning of the Kerala General Sales Tax Act, 1963, and whether the turnover arising from such transactions is liable to purchase tax and turnover tax.

Analysis: The statutory definition of "dealer" is broad and includes a person carrying on business of supplying or distributing goods, directly or otherwise, for commission, remuneration or other valuable consideration. It also expressly includes a commission agent. The liability to purchase tax under section 5A applies to every dealer purchasing taxable goods in the course of business, and section 5(2A) fastens turnover tax where the prescribed turnover limit is crossed. The earlier decision relied upon by the authorities was applied to hold that the agency character of the transactions did not exclude the assessee from the statutory net.

Conclusion: The assessee was held to be a dealer and its turnover was held liable to purchase tax and turnover tax; the challenge failed.

Ratio Decidendi: A commission agent falls within the statutory definition of dealer, and agency transactions do not escape purchase tax or turnover tax where the Act expressly brings such transactions and turnover within the tax net.

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