T BAPPUTTY Vs. GOVERNMENT OF KERALA

JUDGEMENT

(1.) The revision petitioner is a registered firm dealing in timber, and had been assessed by the Sales Tax Officer, Kozhikode, on price of sleepers sold to the railways. The petitioners had entered into the contract to supply on November 23, 1956 and supplied goods worth Rs. 1,34,11-15-1; which amount was asked to be exempted, due to the sleepers having been delivered outside the State, and the sales being thus inter State. The Sales Tax Officer held that since the contract was concluded at Kozhikode and rail delivery was effected at Kallayi yard within the State, the sales were intra-State and the turnover taxable. On appeal the Appellate Assistant Commissioner had also declined to exempt the amount, and the Appellate Tribunal has dismissed the appeal relying on its previous decision in Tribunal Appeal No. 168/57. The ground is that the sale under the contract had become complete at Kallai within the State of Kerala, where the sleepers were loaded into wagons. Thereafter this petition has been filed and the following question been framed for our decision:-

(2.) It was argued that the right of rejection at the outside destination, with the risk of losses during the journey on the petitioner, distinguishes the case before us from those decided by the Madras High Court. But we feel that the carriage, after the delivery at the railway station within the State, cannot be treated as of goods belonging to another; nor vesting of ownership is postponed till the purchasers delivery of the goods to his own agents. It follows that neither the right of rejection at the destination outside the State, nor other conditions vary the true nature of the journey which is by the owner for the better enjoyment of his own property; and the bargains, therefore, do not form part of inter State trade channel. Therefore, the claim of exemption to the sales tax must fail; and the revision petition is dismissed with costs, advocates fee Rs. 100.