TaxTMI 
TaxTMI 
1981 (3) TMI 234
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....s. The petitioners have stated that they are carrying on business in the capacity of selling commission agents. The petitioners, according to them, have maintained accounts books such as ledgers, sales bills, purchase bills, awak book, stock registers, etc. The petitioners issue sales bills whenever they effect sales as asserted by them. Their grievance is that the first respondent, the Commercial Tax Officer, has called upon them to maintain records in the prescribed forms under the Karnataka Sales Tax Rules pursuant to the notification of the Government, respondent No. 3. The matter complained of in this writ petition is that rule 27(1) of the Rules directing the petitioners to issue delivery notes and bills of lading in the prescribed fo....
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....ery notes or bills of lading. According to the learned counsel for the petitioners, an average businessman cannot fill up the delivery note in the prescribed form. The learned counsel has also argued that rule 27(1) of the Rules is in excess of the power conferred on the Government to frame rules under the Act. Rule 27(1) of the Rules reads as follows: "27. Delivery notes to accompany certain consignments.-(1) Every wholesale dealer, while delivering goods to a dealer in pursuance of sale where the aggregate amount for which goods are sold will be five hundred rupees or more, shall issue a bill of lading in triplicate in form 14. Explanation.-(i) 'Wholesale dealer' means any person who sells goods or keeps goods for sale to dealer for....
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....8. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for......... (d-1) the administration of the check posts set up and the barriers erected under this Act and the regulation of work therein;". Similarly section 38(2)(j-3) and (j-4) read as follows: "38. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for......... (j-3) the issue of delivery notes or way bills in respect of goods delivered or transferred to retail dealers in pursuance of sales effected to them, the form and manner of their issue and the time for which they should be preserved; (j-4) the extent of liability of commission agent, broker, del cr....
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.... section 38(2)(j-3). Section 38(2)(j-4) makes it clear that a commission agent, broker, del credere agent, auctioneer or any other mercantile agent, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal is also a dealer so long as he acts for a principal. Insistence of delivery note and way bills in the form prescribed, as set out above, assists the authorities under the Act undoubtedly to effectually administer the check posts set up and barriers erected under the Act and regulation of work therein. Therefore, prima facie, it cannot be said that making rule 27(1) or prescribing form No. 14 is in excess of the powers conferred by the Act on the Government. 6.. However, the argument of ....
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.... retail dealers, leading to confusion as to which of the dealers should give delivery notes or the bills of lading. 7.. Admittedly, the petitioners are traders. They have not chosen to state in what commodity they trade except it is submitted from the Bar that the petitioners are commission agents in market yards registered under the Agricultural Produce (Marketing and Regulations) Act, 1966. It has therefore been argued by the learned counsel that it is impossible for them to fill up item No. 12 in form 14 or item No. 2A. As can be seen item 2A merely refers to the bill number, or cash memorandum number issued by the seller in respect of the goods. This requirement, according to the learned counsel, is not possible as agriculturists do ....