Judgment

HEGDE, J. :- These appeals by special leave arise from the decision of the Allahabad High Court in Sales Tax Reference No. 297 of 1967 on its file. In that case the High Court was considering a reference under Section 11 (1) of the U. P. Sales Tax Act 1948 (hereinafter to be referred to as the Act). The question referred for the opinion of the High Court was :

"Wheter on the facts and in the circumstances of the case, the assessee acting as Commission Agent was liable to pay Sales Tax in the years 1960-61 and 1961-62 on the turnover of Khandsari sugar manufactured by his principles ?"

The assessee was carrying on the business of commission agency in Varanasi. He is also a dealer in Oil-seeds and Kirana. In this case we are only concerned with his dealings in Khandsari sugar. In respect of the assessment years in question a dispute arose between him and the Sales Tax Officer as to his liability to pay tax on the turnover relating to Khandsari sugar sold by him as Commission Agent, on behalf of his principals who manufactured sugar in U. P. Act this stage it may also be noted that the Khandsari Sugar with which we are concerned in this case was not subjected to any additional e