ZACKRIA SONS PRIVATE LIMITED Vs. STATE OF MADRAS

JUDGEMENT

(1.) THIS revision case is directed against the order of the Sales Tax Appellate Tribunal, Madras, in T.A. No. 1449 of 1961. The assessee is Messrs Zackria Sons Private Limited, Government and Public Auctioneers in Madras. They were engaged by the authorities of the Women's Christian College, Madras, to auction the superstructure of a building belonging to the college called "Riverlands Bungalow". The terms of the agreement are found in the conditions of sale announced by the auctioneers and we will presently refer to them. The auction was held on 1st November, 1959, and the highest bidder was Madar Sahib for Rs. 18, 500. A bill was issued to the auction purchaser for the amount less the advance deposited on the date of auction and the auctioneers received the amount from the bidder in full. The department assessed the auctioneers on the abovesaid bid price as representing a sale and regarding the auctioneers as "dealers". The appeal to the Appellate Assistant Commissioner and the further appeal to the Sales Tax Appellate Tribunal were rejected and they have come to this Court in revision.

(2.) THE main terms of the agreement between the assessee, the firm of auctioneers, and the principal, viz., the authorities of the Women's Christian College, can be spelt out from the conditions of the auction sale, as well as from the correspondence. On 13th October, 1959, the Bursar of the College wrote to Messrs Zackria Sons Private Limited asking them to arrange to hold the auction sale on Sunday, the 1st November, 1959, at 10-30 A.M. at the site. THE building was to be kept open for the inspection on the previous Friday between 10 A.M. and 6 P.M. Further instructions relating to the auction sale were to be had from the architects, engaged by the College, Messrs Prynne, Abbott & Davis, Madras. THE auction was to be in one lot to the highest bidder and the Bursar agreed to pay the auctioneers 5 per cent. commission and all advertisement expenses in connection with the sale. THE auctioneers were requested to commence advertising as soon as possible. On 17th October, 1959, the auctioneers wrote to Messrs Prynne, Abbott & Davis stating that they had issued the advertisement and sent a draft of the hand-bill for approval. On 21st October, 1959. Messrs Prynne, Abbott & Davis returned the draft auction notice with a few corrections and directed the auctioneers to hold the auction in accordance with the instructions of the Bursar of the College.Now we come to the notice of the auction sale. It contains the following special conditions :

(3.) THE Tribunal observed :