BABU LAL PRAKASH CHAND Vs. COMMISSIONER SALES TAX

JUDGEMENT

(1.) UNDER section 11(1) of the U.P. Sales Tax Act (hereinafter referred to as "the Act") the Additional Judge (Revisions) Sales Tax, Agra, has submitted this reference with the following three questions for the opinion of this court :-

(2.) M /s. Babu Lal Prakash Chand (hereinafter referred to as the "assessee") carry on business as commission agents at Hathras. The assessee also runs another business of manufacture of dal in the name and style of M/s. Prakash Dal Mills. In respect of the assessment year 1959-60 the assessee in its capacity as the purchasing agent made certain supplies to ex U.P. dealers. Some of the goods so supplied were acquired by the assessee from its sister concern M/s. Prakash Dal Mills.

(3.) A person can be said to be acting as a purchasing agent only if he purchases goods on behalf of his principals from other parties and supplies such goods to this principals, but if a person who supplies his own goods, he can do so only in the capacity of a seller. Such a transaction would be a transaction of sale. In law it is not possible for a person to buy his won goods nor can he sell his won goods to himself. The assessee's contention that he purchased the goods from its sister concern in the first instance and thereafter made supplies to ex U.P. dealers as a purchasing agent is, on the face of it, an untenable proposition.