1969 (4) TMI 100

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....nted as railway auctioneer under the terms and conditions mentioned in the agreement exhibit 1 dated 7th April, 1962, for auctioning the coal ashes of the Union of India pertaining to the Western Railway. The respondent was assessed to sales tax for the accounting years 1962-63 and 1963-64 by two separate assessment orders. But later on proceedings were taken against the respondent under section 12 of the Act by issuing notices to it to show cause why it should not be reassessed and it was reassessed on 10th September, 1965, by the Commercial Taxes Officer, Ajmer. Two separate appeals were filed by the respondent to the Deputy Commissioner (Appeals), Ajmer. They were dismissed on 19th May, 1966. Two separate revision applications were filed....

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....d appointed the respondent as an auctioneer. It is provided in the agreement that the auctioneer shall conduct sales by public auction at all places of the Western Railway for a period of one year of coal ashes belonging to the administration which they may be entrusted with from time to time by the Chief Engineer of the administration at Bombay for disposal by auction. Under the agreement, it is the Chief Engineer who will determine the conditions of sale and the place and time, where and when the sales are to be held. The Chief Engineer is also to determine the period of delivery within which the coal ashes will be removed from the railway premises and such other particulars as the Chief Engineer may deem necessary. The auctioneers are to....

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....ld have done. The learned Additional AdvocateGeneral has argued that under clause (5) of the agreement, a duty has been cast on the auctioneer to settle all disputes with bidders or purchasers regarding incorrect description, quality and quantity of the coal ashes sold to them arising out of erroneous descriptions, etc., due to errors in printing or otherwise and they are responsible for indemnifying the railway administration against all claims or losses which they may suffer in consequence thereof. It is also argued that the delivery orders are to be given by the auctioneers. Simply because these two conditions have been inserted in the agreement exhibit 1, it cannot be taken that the auctioneers are to carry on the business of selling co....