Satish Chandra, J. - (1.) A Bench of this Court being of the opinion that in view of the observations of the Supreme Court in State of Punjab v. Bajaj Electricals Ltd., (1970) 25 STC 82 = (AIR 1968 SC 739) the decision of this Court in Nestles' Products (India) Ltd. v. Commr. of Sales Tax, (1963) 14 STC 606 (All) requires reconsideration, referred this Reference to a larger Bench. That is how the matter has come before us.
(2.) THE Judge (Revisions) Sales Tax, U. P. Lucknow, referred the following three ques tions of law for the opinion of this Court under Section 11 (1), U. P. Sales Tax Act:- "1. Whether under the circumstances of this case the applicant can be treated to be carrying on business activity within U. P. so as to be classified as the dealer for the purposes of assessment? 2. Whether under the circumstances of this case the applicant can be treated to be an importer against whom an assessment etna be passed? 3. Whether under the circumstances ol this case the Sales Tax Officer at Barabanld who had been so directed as having juris diction was vested with the jurisdiction to pass the assessment?" For deciding the first question, the relevant facts are: the assessee carries on the business of buying and selling cotton yarn at Calcutta. It received orders from certain U. P. dealers and, in execution thereof it despatched cotton yarn to them. The rail way receipts were prepared in the name of self. They were endorsed to the assessee's Bankers at Calcutta. The Bankers at Cal cutta then realised the sale price from the purchasers within U. P. on endorsement and delivery of the receipt, through its branches in U. P. This modus operandi was accept ed by the assessing authorities. But, they, including the Judge (Revisions), held that the assessee was carrying on the business of sell ing goods within U. P. and was a 'dealer' as defined by the U. P. Sales Tax Act and as such liable to tax.
(3.) SECTION 2 (c), U. P. Sales Tax Act, defines the word 'dealer' to mean any person who carries on the business of buying or selling- goods within Uttar Pradesh.;