2001 (12) TMI 855

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....bsp; R. JAYASIMHA BABU, J.-The petitioner is a co-operative society, which is engaged in marketing of agricultural produce of its members. For the assessment years 1992-93, 1994-95 and 1995-96, the assessing officer levied purchase tax on the society, on the groundnut grown by its members and sold at the auctions held by the assessee, even after describing the position of the society as "agent ....

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....st purchase in the State and not the point of sale. That entry reads thus: "Oil-seeds, that is to say,- (i) groundnut or peanut (a) At the point of first sale in the (Arachis hypogaea) State in respect of goods purchased from outside the State. (b) At the point of first purchase in the State in respect of goods not falling under item (a) above." The very fact that the society is the ag....

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....s it is in a position to pass on goods title to the buyer on behalf of the members. That position however does not translate into one of sale by principal to its agent. Agency implies the existence of a relationship between a principal and a person who is authorised to act on behalf of such principal, being called as the agent. The title passed on to the buyer is the title that vests in the princi....