https://www.taxtmi.com/caselaws?id=99513 The legal character of the despatch-and-sale arrangement had to be determined from the agreement and surrounding circumstances, not the labels chosen by the parties. Because the supplier fixed and could alter prices, the merchant earned only a fixed commission, remittances were made only after sales, and the supplier retained control over unsold stock and could cancel the agency, property in the goods did not pass on despatch. The arrangement therefore created a principal-agent relationship, not a vendor-purchaser relationship, and the transactions were not sales liable to sales tax. en-us Mon, 29 Jan 1962 00:00:00 +0530 Tue, 21 Jul 2026 12:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99513 The legal character of the despatch-and-sale arrangement had to be determined from the agreement and surrounding circumstances, not the labels chosen by the parties. Because the supplier fixed and could alter prices, the merchant earned only a fixed commission, remittances were made only after sales, and the supplier retained control over unsold stock and could cancel the agency, property in the goods did not pass on despatch. The arrangement therefore created a principal-agent relationship, not a vendor-purchaser relationship, and the transactions were not sales liable to sales tax. Case-Laws VAT / Sales Tax Mon, 29 Jan 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99513