Double taxation on turnover through a commission agent is impermissible once the agent has already been assessed and tax collected.

Turnover from sales routed through a commission agent cannot be assessed again in the hands of the principal assessee where the same turnover has already been assessed and tax collected from the agent. The document states that verification showed the agent had been assessed on the turnover and tax had already been recovered, so a second assessment on the principal would amount to double taxation. On that basis, the assessment on the principal assessee was not sustainable and the revision was allowed, with the Tribunal's order set aside.

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Issues: Whether the turnover could be assessed again in the hands of the principal assessee when the commission agent had already been assessed and tax had been collected on the same turnover.

Analysis: The dispute turned on liability for turnover arising from sales routed through a commission agent under the relevant sales tax scheme. On verification, it was found that the agent had in fact been assessed on the turnover and tax had been collected. In such circumstances, the same turnover could not be brought to tax again in the hands of the principal, as that would result in double taxation.

Conclusion: The assessment on the principal assessee could not be sustained and the revision was allowed.

Final Conclusion: The order of the Tribunal was set aside because the turnover had already suffered assessment in the hands of the commission agent, and the assessee was not liable to be taxed again on the same turnover.

Ratio Decidendi: Where the turnover of a consignment or agency sale has already been assessed and tax collected from the commission agent, the same turnover cannot be assessed again in the hands of the principal assessee.

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