https://www.taxtmi.com/caselaws?id=157185 For sales tax purposes, a genuine sale to an intermediary remains the first taxable sale where the assessee contracts with that buyer, invoices it directly, and receives only the agreed price, even if the goods are delivered to a third party under a separate downstream arrangement. The revenue cannot ignore that transaction or tax the assessee on the intermediary's higher resale price without proof that the arrangement is a sham or colourable device. A transaction may be disregarded only on material showing lack of commercial reality and tax-driven structuring; on the facts stated, brand value and goodwill explained the higher resale price, and the assessee's turnover was confined to the consideration actually received. en-us Mon, 06 Apr 1992 00:00:00 +0530 Tue, 01 Oct 2013 14:49:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=157185 For sales tax purposes, a genuine sale to an intermediary remains the first taxable sale where the assessee contracts with that buyer, invoices it directly, and receives only the agreed price, even if the goods are delivered to a third party under a separate downstream arrangement. The revenue cannot ignore that transaction or tax the assessee on the intermediary's higher resale price without proof that the arrangement is a sham or colourable device. A transaction may be disregarded only on material showing lack of commercial reality and tax-driven structuring; on the facts stated, brand value and goodwill explained the higher resale price, and the assessee's turnover was confined to the consideration actually received. Case-Laws VAT and Sales Tax Mon, 06 Apr 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=157185