ALWAYE AGENCIES vs DY. COMMISSIONER OF AGRICULTURAL INCOME-TAX AND SALES TAX,E

The Supreme Court held that under the Kerala General Sales Tax Act, the relationship between the distributor and the manufacturing company was that of a purchaser rather than an agent. The Court found that the distributor had the right to sell the product and bore the risks associated with the transactions, which included arranging payments and insuring goods. The Court dismissed the appeal, affirming that the transactions constituted sales by the distributor to consumers, thus making the turnover liable for tax assessment.