HIRANAND RAMSOOK FIRM Vs. PROVINCE OF MADRAS NOW ANDHRA
LAWS(APH)-1954-7-2
HIGH COURT OF ANDHRA PRADESH
Decided on July 30,1954

HIRANAND RAMSOOK FIRM Appellant
VERSUS
PROVINCE OF MADRAS (NOW ANDHRA) Respondents

JUDGEMENT

- (1.) THE questions that arise in this second appeal are : (i) whether the plaintiffs are "dealer" within the meaning of Section 2(b) of the Madras General Sales Tax Act, and (ii) whether they are exempted from payment of tax under Section 8 of the said Act.
(2.) THE plaintiffs' case may be briefly stated :- The plaintiffs are commission agents carrying on business in silver and gold. The customers would give an order for purchase of silver or gold at Bombay. The plaintiffs would send a telegram to Bombay customers and silver and gold would be received by the plaintiffs from the Bombay merchants. On the date of the receipt of the goods a bill would be prepared and the signature of the principal customer taken and a commission of 5 annas per Rs. 100 in the case of gold, and 6 annas per Rs. 100 in the case of silver would be given to the plaintiffs. To put it shortly, their case is that they purchased silver and gold from the Bombay merchants for and on behalf of their customers and that they received nothing more than the commission to which they were entitled.
(3.) THE defendant contended in the written statement that the plaintiffs were not commission agents for the purchase of gold and silver and that they carried on the said business in the year of assessment, not as agents of known principals, but as regular dealers on their own account. The defendant further pleaded that the plaintiffs did not comply with the conditions of the licence, and that therefore, they forfeited their right to exemption under the provisions of the Madras General Sales Tax Act. The learned Subordinate Judge, and on appeal the learned District Judge held that the plaintiffs were not commission agents, but carried on business on their own account, and that therefore, they were liable to sales tax. They further held that the plaintiffs did not comply with the conditions of the licence, and that, therefore, they were not exempted from the payment of tax. The plaintiffs preferred the above appeal.;


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