1956 (6) TMI 8

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....he Additional Commissioner, Commercial Taxes, dated 18th January, 1954. The learned counsel for the petitioners raised the two following points against the order of the Additional Commissioner: (1) That in respect of the tin imported from China for the Government of India valued at Rs. 24,50,227, the petitioners were nothing but purchasing agents of the said Government and they were paid a comm....

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....nd Supplies, Government of India, the petitioners stated explicitly that they would act only as commission agents in respect of the proposed transaction and that they would charge Rs. 5 per cwt. (which is just over 1 1/2 per cent. of the price), inclusive of their commission for their services. Though this was not confirmed in so many words by the Director-General, it was tacitly confirmed by his ....

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....t the ceiling price fixed by Government of Rs. 6,825 per long ton c.i.f. Calcutta as is proved by the letter of the National Bank of India dated 13th May, 1948. The above evidence would tend to prove the case of the petitioners that they were acting only as purchasing agents on a commission basis for the Government of India. As against this, the learned Government Pleader pointed out that a com....

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.... about the nature of their functions. In this connection the learned counsel for the petitioners drew my attention to the general law regarding principal and agent, which is too well-known to need reiteration. The conduct of the petitioners in agreeing to import tin on behalf of the Government for a commission of 1 per cent. only, when the rate of sales tax was very much higher than this, would go....