SUNDARA FINANCE LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner - Sundaram Finance Limited - questions the validity of Ext. F, an order of the Sales Tax Officer, Ernakulam, dated the 25th March 1962. The sole question for determination is whether under the arrangements between the company and its customers there is a sale by tire customers to the company at the commencement of those arrangements and a resale by the company to the customers at the termination thereof.

(2.) It is common ground that if there was a sale by the customers to the company at the inception of the arrangements, there will be a resale by the company to the customers at the termination of those arrangements and that the company will be liable to pay sales tax on the resale as held by the Department. The question for determination, therefore, is whether there is a transfer of property by way of sale from the customers to the company at the inception of the arrangements between them.

(3.) The arrangements are evidenced by the documents which have been marked as Exts. B1 to B9. A copy of those exhibits is appended to this judgment.