- (1.) UNDER section 11(1) of the U.P. Sales Tax Act (hereinafter referred to as "the Act") the Additional Judge (Revisions) Sales Tax, Agra, has submitted this reference with the following three questions for the opinion of this court :- "(1) Whether the seller could, in law, itself act as purchasing agent for ex U.P. buyers ? (2) Whether on the circumstances stated above it could be held that the supplies made by M/s. Prakash Dal Mills to M/s. Babu Lal Prakash Chand were not sales within the meaning of the U.P. Sales Tax Act ? (3) Whether on the circumstances stated above it could be held that the supplies made By M/s. Babu Lal Prakash Chand as purchasing agents to ex U.P. dealers could amount to sales occasioning export taxable under the Central Sales Tax Act ?"
(2.) M /s. Babu Lal Prakash Chand (hereinafter referred to as the "assessee") carry on business as commission agents at Hathras. The assessee also runs another business of manufacture of dal in the name and style of M/s. Prakash Dal Mills. In respect of the assessment year 1959-60 the assessee in its capacity as the purchasing agent made certain supplies to ex U.P. dealers. Some of the goods so supplied were acquired by the assessee from its sister concern M/s. Prakash Dal Mills. The Sales Tax Officer exempted from tax the turnover of the supplies which the assessee has purchased from other dealers, but in respect of the goods belonging to its sister concern, namely, M/s. Prakash Dal Mills, the Sales Tax Officer took the view that such supplies represented the turnover of sales of the assessee's own goods and as such were not entitled to exemption. As the supplies had been made to ex U.P. dealers, the turnover was held liable to tax under the Central Sales Tax Act. This finding of the Sales Tax Officer has been affirmed on appeal by the Judge (Appeals) as also, on revision, by the Judge (Revisions). At the instance of the assessee the Judge (Revisions) has submitted this reference.
(3.) A person can be said to be acting as a purchasing agent only if he purchases goods on behalf of his principals from other parties and supplies such goods to this principals, but if a person who supplies his own goods, he can do so only in the capacity of a seller. Such a transaction would be a transaction of sale. In law it is not possible for a person to buy his won goods nor can he sell his won goods to himself. The assessee's contention that he purchased the goods from its sister concern in the first instance and thereafter made supplies to ex U.P. dealers as a purchasing agent is, on the face of it, an untenable proposition.;