LAWS(KAR)-1954-8-8

STATE OF MYSORE Vs. A.C. HANUMANTHAPPA

Decided On August 28, 1954
STATE OF MYSORE Appellant
V/S
A.C. Hanumanthappa Respondents

JUDGEMENT

(1.) THIS petition has been registered on a reference made under section 16

(2.) THE facts of the case as disclosed in the statement of case are as under : The respondent Hanumanthappa is a merchant in Chickkaballapur, dealing on his own account as well as on commission basis inside the State and also consigning goods outside the State. He claimed exemption in respect of goods sold by him or on his behalf on commission basis both by agents within and outside the State. The Sales Tax Officer granted exemption on all sales outside the State, but disallowed the claim on sales which took place within the State, holding that the respondent being the principal was liable to pay tax irrespective of the fact whether or not his agent had taken out a licence under section 9 of the Mysore Sales Tax Act.

(3.) THE following two questions are suggested by the respondent and referred to by the revising authority : - (a) Whether the principals can be assessed on sales effected by commission agents who have obtained licence under section 9 of the Mysore Sales Tax Act even though the principals have not collected sales tax and have not included the said commission sales in their turnover or whether the commission agents themselves are liable to pay sales tax on such turnover, and (b) in cases where the sales are effected by commission agents who have not taken licenses under section 9 of the Mysore Sales Tax Act, whether both the principals and the agents are liable to pay sales tax on the turnover.