Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | sales tax Liability agent of non-resident principal Madras General Sales Tax Act 1939 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Sales Tax—Agent of non-resident principal—Liability— Madras General Sales Tax Act, 1939 (Mad.9 of 1939), s. 14A.The appellant was an agent in Andhra Pradesh of certain non-resident principals who were dealers in cloth. It received commission in some cases on the orders booked and in others on all the sales effected by the principals in the territory. One kind of transactions it carried on in course of its business related to goods sold by its principal to buyers in the State. The appellant in these transactions, besides booking orders, received the railway receipts from the outside principals, handed them order to the buyers and some times collected and transmitted the amount to the outside principals. The appellant was assessed to sales tax on its turnover for the years 1954-55 and 1955-56. The question was whether in carrying on such transactions the appellant was a dealer within s. 14A of the Madras General Sales Tax Act, 1939. The Tribunal held that the appellant was such a dealer and the High Court in affirming that decision held that the non-resident principals were doing the business of selling in the State and the sales in question were by the appellant either on behalf the principal or on its own behalf and that the appellant was in either cass liable.Held, that the High Court had taken the right view of the matter. Section 14A of the Act made the agent fictionally liable as a dealer in the circumstances as specified by it, and the agent was liable irrespective of whether the turn-over of its business was more or less than the minimum prescribed by the Act. |
Judge | Honble Mr. Justice M. Hidayatullah |
Neutral Citation | 1962 INSC 159 |
Petitioner | G. Gilda Textile Agency |
Respondent | State Of Andhra Pradrsh |
SCR | [1963] 2 S.C.R. 248 |
Judgement Date | 1962-04-19 |
Case Number | 397 |
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