ASHOK LEYLAND Vs. STATE OF MADRAS

JUDGEMENT

(1.) THIS appeal in the form of a tax case is directed against an order of the Board of revenue dated 20th October 1964, passed in exercise of its suo motu powers of revision. The appeal is confined only to a turnover of Rs. 21,02,712. 34, which consists of admittedly inter-State sales of chassis. These sales were not originally brought to tax on the view that they took place prior to 1st July 1957, on which date S. 6, by notification in that regard, was brought into force. The Board of revenue disagreed with that view and was of opinion that the inter-State sales, though invoiced or billed prior to 1st July 1957, were actually completed only thereafter by delivery to the out-of-the-State dealers.

(2.) THE Board's order shows that it laid great emphasis on the fact that it was the assessee's drivers that drove out the vehicles outside the borders of the State, that the vehicles were also insured in the name of the assessee and thus the right of disposal of the vehicles vested in the assessee up to the time of the delivery to the buyer. On these facts the Board came to the conclusion that the property in the vehicles passed to the buyers at the time of the delivery to the out of-the-State buyers.

(3.) WE have examined one of the bills prepared by Ashok Leylands, Ltd. which is the assessee. This invoice bears No. VL 163/57 dated 29th June 1957 and is addressed to the G. M. Delhi Road Transport Authority, Scindia House, New Delhi. The chassis number, the engine number, the particulars of the front and rear tyres, the quantities of the vehicles covered by the invoice and other particulars as to the make and quality, etc. of the vehicles are given. The unit price and the total value of the vehicles is get out and 90 per cent of the total value is indicated. We find from the invoice that it refers to the order of the Delhi Road Transport authority, No. G. M. 505 of July 30, 1956, and agreement concluded by the assessee on 10th August 1956. It does not appear that the order and the agreement in this and similar documents in other cases have been produced by the assessee or examined by the Board of Revenue in deciding this case. It is not clear to us what the 90 per cent of the value mentioned in the notice represents; whether it is to be collected to the credit of the assessee on delivery of the vehicles out of the State or it merely represents a book entry in other circumstances. When a sale is complete will depend on a number of facts, including the nature of the goods, and the terms relating to appropriation, or the manner of delivery. The Board has merely relied on the facts we mentioned, namely, the assessee's own drivers driving out the vehicles whose insurance also happened to be in the assessee's name. That by itself may not be conclusive and a satisfactory decision cannot be arrived at as to when the inter-State sale was completed merely on those facts.