LAWS(MAD)-1955-3-17

A M MOHAMMED ISHOK Vs. STATE OF MADRAS

Decided On March 02, 1955
A.M.MOHAMMED ISHOK Appellant
V/S
STATE OF MADRAS, REPRESENTED BY THE COMMERCIAL TAX Respondents

JUDGEMENT

(1.) This is a revision petition filed by an assesses against the decision of the Sales Tax Appellate Tribunal raising for consideration the cannot construction of the Explanation to Article 286(i)(sic) of the Constitution.

(2.) The assesses is a registered manufacturer of and a licensed dealer in groundnut oil carrying on business in Pollachi and the assessment relates to the year 195051. During the accounting year he sold oil to Messrs. Tata Oil Mills Co. Ltd., under the terms of a contract on conditions embodied in an order in the form below: To Messrs. Tata Oil Mills Co. Ltd., Coimbalore. Dear Sirs, Ref: Sales contract -- Groundnut oil. This is to confirm that I have this day sold groundnut oil to you as per terms and conditions given below: Quantity: tons of 2240 Ibs. each. Price: Rs. 2025 (Rs. two thousand and twenty-five only per ton of 2240 Ibs. nett loose F.O.R. Pollachi In including sales tax. Quality: Pure expeller groundnut oil with six per cent F. F. A. or below. Delivery: F. O. R. Pollachi In oil to be supplied during the month of February (within the 15th) 1951. Containers: are to be supplied by you F. O. R. Pollachi in. R. R. as usual. The course of business between the assesses and the purchasers was as follows: As the sale of the oil was "loose" the containers were supplied by the purchasers who sent their own drums to the assessee for the carriage of the oil. These containers were checked up by the sellers and they were filled in at the assessec's mills. The drums were transport-ed to Pollachi Junction and then loaded on Railway waggons by the sellers who obtained railway receipts in the name of the buyers as consignors, the consignees of course being the same. There is also no dispute that on the instructions of the buyers all the oil sold under these contracts were routed to Ernakulam where they were cleared by the buyers and the commodity was consumed in the latter's mills. The railway receipts were with the relative invoices handed over at Coimbatore to the buyers where they had an office and the sellers received a good portion of the price. The balance was paid after weights were checked and fatty acid tests were carried out by the buyers at Ernakulam.

(3.) The total turnover of the goods involved in these contracts for the assessment year was Rs. 1,80,738-13-4.