M H SHAH Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS judgement will dispose of the above mentioned two writ petitions.

(2.) THE petitioner was appointed as the authorised auctioneer of the Western Railway for conducting the auction of coal ash, half-burnt coal and scrap stores on behalf of the Union of India under the supervision of the District Controller of Stores, Western Railway, Ajmer during the years 1962-63 and 1963-64 under an agreement dated 7th April, 1962. Condition No. 17 of this agreement was that the auctioneer will be responsible to recover from the purchasers, sales tax and other charges, if any, leviable on such sales, conducted by him or obtain necessary licence or permission from the concerned Governments. THE assessee collected sales tax from the buyers in pursuance of this arrangement and also deposited the amount with the Government but of course under a protest that he was not a dealer and that he was entitled to refund of the tax paid by him.

(3.) IN the State of Kerala vs. Aluminum INdustries Ltd. (2), M. K. Krishan Swamy vs. Union of INdia (3) and D. Cawasji and Co. vs. State of Mysore (4) the Supreme Court appears to have endorsed the rule laid down in Bhailal Bhai's case.