TaxTMI 
TaxTMI 
1956 (2) TMI 42
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....blank, which, after being filled in by the block-making firm, is returned to the appellants, wherein the charge is made or shown "less discount 15 per cent." They receive a similar discount from the newspaper or other journals and recover the amounts of the bills, without showing the discounts received by them, from their clients. In this case we are concerned with the subject of the blocks which are got prepared and utilised by the newspapers or other journals concerned. The view taken by the authorities below is that the blocks are actually purchased by the appellants and again sold to their clients and that on such sales the sales tax can legitimately be charged, and the tax has been charged accordingly. In support of those orders Shri K....
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.... is of no significance whatsoever to the block engraver" appears to us to be clearly erroneous. The view held by the Collector that there is privity of contract for the manufacture and sale of materials between the block engravers and the appellants is also, therefore, erroneous. It cannot, therefore, be held, as held by the Collector, that what takes place between the block- makers and the appellants is a sale of the blocks by the appellants to their clients. When the principal is known, as in this case he is known to the block-makers, there is Prima facie no contract with the agent, although when the principal is not known, then prima facie the agent, though known to be an agent, does not bind himself personally, the other party not being....