1960 (11) TMI 107

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....r of all the non-resident principals of the petitioner. His contention is that such omnibus assessments are not warranted by the Act, and that they should be quashed by appropriate writs or directions from this court under Article 226 of the Constitution. 2.. The contention on behalf of the State is that such assessments are proper and are justified by section 18 of the General Sales Tax Act, 1125. That section reads as follows: "In the case of any person carrying on the business of buying or selling goods in the State but residing outside it (hereinafter in this section referred to as a 'non-resident'), the provisions of this Act shall apply subject to the following modifications and additions, namely: (i) In respect of the busine....

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.... 1939, corresponds to section 18 of the General Sales Tax Act, 1125. In India Coffee and Tea Distributing Co., Ltd., Madras v. State of Madras[1958] 9 S.T.C. 769., the Madras High Court dealt with section 14-A as follows: "It is clear from the provisions of this section that it is really the non-resident principal that is assessed to tax and the agent is deemed to be a dealer in respect of his business as a convenient representative for assessment, levy and collection of the tax. The assessment is with reference to the sales on the principal's account and the rates of tax are those applicable to him. The agent is given a statutory right to retain moneys of the principal in his hands a sum equal to the tax assessed or paid. Under section ....