https://www.taxtmi.com/caselaws?id=100768 A producers' co-operative society that receives members' cotton and cotton seeds for collective grading, storage, sale, and remittance of proceeds acts as an agent, not as a purchaser, where the bye-laws show mere entrustment of goods rather than transfer of property for price. Advances against estimated value, interest on advances, and payment after deduction of charges were treated as features consistent with agency. The society's profit-related bye-law provisions were confined to its own income and did not indicate purchase of members' produce. The governing arrangement and surrounding circumstances, not the parties' labels, determined the legal character of the transaction. en-us Tue, 14 Sep 1971 00:00:00 +0530 Fri, 25 Jul 2014 14:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100768 A producers' co-operative society that receives members' cotton and cotton seeds for collective grading, storage, sale, and remittance of proceeds acts as an agent, not as a purchaser, where the bye-laws show mere entrustment of goods rather than transfer of property for price. Advances against estimated value, interest on advances, and payment after deduction of charges were treated as features consistent with agency. The society's profit-related bye-law provisions were confined to its own income and did not indicate purchase of members' produce. The governing arrangement and surrounding circumstances, not the parties' labels, determined the legal character of the transaction. Case-Laws VAT and Sales Tax Tue, 14 Sep 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100768