LALCHAND JALAMCHAND Vs. SALES-TAX OFFICER

JUDGEMENT

(1.) BY an order of this Court dated the 2nd May, 1958, the Commissioner of Sales-tax Rajasthan was directed to refer a question of law under Section 15 (3) of the rajasthan Sale-tax Act (Act No. 29 of 1954) (hereinafter called 'the Act'), and it is thus that this reference comes for opinion.

(2.) M/s. Lalchand Jalamchand of Bikaner (hereinafter called 'the assessee') were assessed for the assessment year 1956-57 on a turnover determined at the figure of Rs. 96,992/9/9. It raised a tax liability in the sum of Rs. 12,114/1 against the assessee which they disputed on the ground that they had merely imported hydrogenated vegetable and edible oils which were sold by their commission agents M/s. Pirdan Prem Chand of Bikaner (hereinafter called 'the Commission agent' ). The assessee claimed to be not liable because they made no sales and for the commission agent it was contended that they stood exempted from payment of sales-tax as they had deposited the requisite fee in the sum of Rs. 500 pursuant to a notification No. F. 21 (7) SR/55 dated 14th April, 1955. The question which this Court formulated for answer is as follows:

(3.) LEARNED counsel for the assessee argued, relying on Radhakrishna Rao v. Province of Madras, AIR 1952 Mad 718 (FB), that a commission agent, according to the accepted mercantile practice, has control over or possession of the goods and has the authority from the owner of the goods to pass the property in and title to the goods When a commission agent sells goods belonging to his principal with his authority and consent and without disclosing to the buyer the name of the owner, there is certainly a transfer of property in the goods from the commission agent to the buyer, and therefore, it was the commission agent who transferred the ownership of the property in the commodity.