B. Basavalingappa And Ors. vs The State Of Karnataka And Ors. on 11 January, 1985
Therein this Court accepted the above enunciation of the Full Bench of the Madras High Court and rejected its claim for non-payment of taxes and that decision was affirmed by the Supreme Court since [Bagalkot Cement Co. Ltd. v. State of Mysore [1976] 37 (SC)]. In affirming the decision of this Court, the Supreme Court expressly approved the above statement of law made by the Full Bench of the Madras High Court. From this what emerges is that a commission agent engages himself in sale or purchase, buying or selling or in the taxable event contemplated in entry No. 54 and therefore, the State Legislature was undoubtedly competent to legislate section 11 of the Act.