TaxTMI 
TaxTMI 
1977 (3) TMI 144
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..... 12,06,990.35 for the year 1959-60 and a turnover of Rs. 24,08,705.83 for the year 1960-61. For the assessment year 1961-62 the assessee was assessed on a taxable turnover of Rs. 31,31,177.88 as against Rs. 24,85,999.25 reported by the assessee. In that year, there was a disputed turnover of Rs. 6,43,194.33. The main contention raised by the assessee-society against the above assessments to tax was that, in respect of the sales covering the turnovers in dispute for all the three years, the society merely acted as an intermediary, bringing together the agriculturistprincipals and the respective purchasers in auction held in the presence of the members and that the society did not actually do any business of purchasing or selling to make its....
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.... for commission, remuneration or other valuable consideration, and includes......... (iii) a commission agent, a broker or a del credere agent, or an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal;......... Explanation (1).-A society (including a co-operative society), club or firm or an association which, whether or not in the course of business, buys, sells, supplies or distributes goods from or to its members for cash, or for deferred payment, or for commission, remuneration or other valuable consideration, shall be deemed to be a dealer for the purposes of this Act." After the enactment of this provisio....
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....ition of 'dealer' in the manner already referred to. Therefore, an agent with dominion over the goods of the principal and with authority to transfer the property in such goods and consequently effect sales and acquire a turnover in respect of such transactions cannot be treated on the same footing as the agent of a non-resident principal assessed under section 14-A. The turnover acquired by the agent in the circumstances mentioned above is in law as well as in fact his own turnover for the purposes of sales tax assessment and it cannot be considered as the principal's turnover." In the light of the above, we may consider the facts with reference to the assessment years in question. The modus operanti of the transactions has been describ....
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.... sell the goods without the consent of the member concerned; and (2) actually at the auction the goods are sold only when the agriculturist-member accepts the price offered. These two facts about which there is no controversy clearly establish that the assessee cannot be said to have authority to transfer the property in the goods. Even if the assessee could be said to have dominion over the goods, if it did not have authority to transfer the property in such goods, certainly as per the law laid down by the Bench, referred to already the assesee in the present case cannot be said to have effected a sale and, therefore, cannot be said to have acquired a turnover liable to sales tax. However, we may also point out that the Tribunal has ....