ASSOCIATED CEMENT COMPANIES LIMITED KYMORE ASSOCIATED CEMENT COMPANIES LIMITED ASSOCIATED CEMENT COMPANIES LIMITED Vs. COMMISSIONER OF SALES TAX INDORE:DIVISIONAL DEPUTY COMMISSIONER OF SALES TAX SATNA M P:DEPUTY COMMISSIONER OF SALES TAX JABALPUR M P

JUDGEMENT

(1.) These are appeals by special leave and are directed against the separate decisions of the Madhya Pradesh High Court in references under the Madhya Pradesh Sales Tax Act. Civil Appeal No. 768/77 relates to the assessment period 1951-52. Civil Appeal No. 539/ 78 relates to 1950-51 and Civil Appeal No. 1038/78 to 1952-53.

(2.) The appellant is a manufacturer. of cement in the factory located at Kymore in Madhya Pradesh. Several cement manufacturing companies as also the appellant had entered into arrangement with the Cement Manufacturing Company of India Limited, whereunder the Marketing Company was appointed as the sole and exclusive sales manager for the sale of cement manufactured by the manufacturing companies and the manufacturing companies had agreed not to sell directly or indirectly any of their cement to any person save and except through the Marketing Company. The manufacturing companies were entitled to be paid a certain sum for every ton of cement supplied by them or at such other rate as might be decided upon by the Director of the Marketing Company. The Marketing Company had the authority to sell cement at such price or prices and upon such terms as it might in its sole discretion consider appropriate.

(3.) For the three periods referred to above the appellant had supplied cement manufactured by it to the Marketing Company and maintained at the assessment stage for the respective periods that these were covered by the explanation to Art. 286(1)(a) as it then stood and, therefore, the transactions were not exigible to sales tax in Madhya Pradesh. This stand was negatived by the Assessing Officer, the first appellate authority and the Board of Revenue. The Board in the statement of the case drawn up by'it held that cement became a controlled commodity from 8th of August, 1942, and notwithstanding the expiry of the Defence of India Rules with effect from 30th. of September, 1946, distribution of cement continued to be controlled even during the period. The Marketing Company had its establishment at Nagpur then within Madhya Pradesh which received the orders of authorisations and managed the supply from the factory at Kymore. The Board in its statement further stated: