STATE OF MYSORE Vs. A CHANUMANTHAPPA

JUDGEMENT

(1.) This petition has been registered on a reference made under section 16(1) of the Mysore Sales Tax Act of 1948 by the revising authority, the Commissioner of Sales Tax is Mysore.

(2.) The facts of the case as disclosed in the statement of case are as under : The respondent Hanumanthappa is a merchant in Chickkaballapur, dealing on his own account as well as on commission basis inside the State and also consigning goods outside the State. He claimed exemption in respect of goods sold by him or on his behalf on commission basis both by agents within and outside the State. The Sales Tax Officer granted exemption on all sales outside the State, but disallowed the claim on sales which took place within the State, holding that the respondent being the principal was liable to pay tax irrespective of the fact whether or not his agent had taken out a licence under section 9 of the Mysore Sales Tax Act.

(3.) The Deputy Commissioner rejected the appeal on the ground that the commission agent selling goods on behalf of the principal has not obtained licence under section 9 of the Act and that in the absence of licence under section 9 of the Act by the commission agent, both the principal and the commission agent become liable to pay tax. The respondent raised the same points in a revision petition filed before the Commissioner of Sales Tax and the said revision petition was also dismissed; he then filed a petition under section 16 of the Mysore Sales Tax Act to refer the points of law raised by him for decision to the High Court.