ALAGAPPA TEXTILES COCHIN MILLS Vs. STATE OF KERALA

JUDGEMENT

(1.) THESE two tax revision cases are filed by the assessee and relate to the assessment years 1975-76 and 1976-77. THESE cases arise from the order of the Sales Tax Appellate Tribunal, Palghat. Since the assessee is the same and common questions arise for consideration these two tax revision cases are dealt with together.

(2.) THE questions that arise for decision are : (i) Whether the conclusion of the Sales Tax Appellate Tribunal that the transactions are not agency sales is sustainable in law ? (ii) Whether the transactions are really inter-State sales taxable under section 3 (a) of the Central Sales Tax Act ?

(3.) RELYING on some of the clauses in the agreement, annexure-A, learned counsel for the assessee would contend that the depot keeper was only an agent of the assessee and not the purchaser of the goods. The agreement describes Sri Mahavir Prasad Suresh Kumar as the depot keeper and petitioner has to open a depot for sale of yarn in the State of West Bengal and appoint a depot keeper for sale of mill's yarn in the above State. It is provided that the depot keeper shall sell the goods and remit the sale proceeds at the earliest possible, adjusting the expenses incurred actually by them. The depot keeper shall not sell for credit, but only for cash. The depot keeper was allowed commission at 2 per cent for all sales made by him on the net value of yarn realised by the mills. The petitioner will not sell goods to anyone else within the State of West Bengal and if any enquiry is received from the dealers of the area, the sale will be directed to the depot keeper and in case any direct sale is made the depot keeper can claim commission of 2 per cent. The petitioner will bear expenses such as cartage and unloading charges incurred at the depot.