(1) Omitted w.e.f. 24-8-2017.

(2)(a) Where a dealer who bonafidely buys or sells for an agreed consideration (hereinafter referred to as the commission agent) any goods specified in Schedule on behalf of his principal, such commission agent and his principal shall both be jointly and severally liable to pay tax under this Act.

(b)(i) If the principal on whose behalf the commission agent has sold the goods proves in the prescribed manner to the satisfaction of the Commissioner that tax has been paid or payable by his commission agent on such goods, the principal shall not be liable to pay tax in respect of the sale of such goods.

(ii) If the commission agent who has sold goods on behalf of the principal proves in the prescribed manner to the satisfaction of the Commissioner that the tax has been paid by his principal on such goods, the commission agent shall not be liable to pay tax in respect of the sale of such goods.

(3) Where any dealer or person with a view to evade payment of tax or in order to claim any input tax rebate which he otherwise is not eligible for or was carrying on business in the name of or in association with any other person either directly or indirectly, whether as an agent, employee, manager, partner or power of attorney holder, guarantor, relative or sister concern or any other capacity, such person and the dealer in whose name the registration certificate was obtained shall jointly and severally be liable for the payment of tax assessed, reassessed, interest payable and penalty imposed under the Act and such tax, interest and penalty shall be recovered from all or any of such persons as if such person or persons are dealer under the Act.