1954 (8) TMI 24

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....on in respect of goods sold by him or on his behalf on commis- sion basis both by agents within and outside the State. The Sales Tax Officer granted exemption on all sales outside the State, but disallowed the claim on sales which took place within the State, holding that the respondent being the principal was liable to pay tax irrespective of the fact whether or not his agent had taken out a licence under section 9 of the Mysore Sales Tax Act. The Deputy Commissioner rejected the appeal on the ground that the commission agent selling goods on behalf of the principal has not obtained licence under section 9 of the Act and that in the absence of licence under section 9 of the Act by the commission agent, both the principal and the commiss....

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.... excludes the responsi- bility of the principal and that in consequence, sales tax must be levied and recovered from an unlicensed agent and the department should not, on any account, look to the principal for payment of the tax. We are unable to agree fully with the contentions advanced. Section 3 obliges every dealer to pay tax on his total turnover for the year and the dealer is defined under section 2(d) as meaning any person who carries on the business of buying or selling goods. Therefore a person whether he himself sells direct or through an employee or through a commission agent or through other means comes under the definition of a dealer irrespective of the nature of the machinery he employs to sell the goods. (Vide In re K.T. Pap....