MEDOPHARM Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THESE appeals are by the assessee, which is a manufacturer of medicines. It had supplied medicines pursuant to an order placed by the Director of Medical and Health Services of the Government. The payment therefor was admittedly made by the Government in the Labour and Employment Department, and the amount paid was debited in the Government account under the head "E.S.I. Scheme". The officer, who placed the order, had directed the assessee to make supplies to the E.S.I. corporation, and the supplies were so made. The assessee produced the "D" forms issued by the Officer, who had placed the order, viz., Director of Medical and Health Services (E.S.I. Scheme), who is admittedly an officer of the Government. This form was initially rejected by the assessing officer, but was accepted by the appellate authority. The Joint Commissioner, in a suo motu revision, has reversed the order of the Appellate Assistant Commissioner on the ground that the E.S.I. corporation is a separate statutory corporation, that it is not a department of the Government, that payment for the goods supplied though made by the Government was only pursuant to an obligation that it had to contribute to the funds of the Employees State Insurance Scheme and, therefore, the sale effected was not a sale to the Government. He has also held that the "D" form signed by the Director of Medical and Health Services is not a form signed by the authorised officer of the Government. That finding has been recorded solely on the ground that the designation of the officer is mentioned, as Director of Medical and Health Services (E.S.I. Scheme). There was no material before the Commissioner, nor has any material been placed before us to show that the officer, who signed the certificate, is an officer of the E.S.I. corporation.

(2.) THE opening part of section8(4) of the Central Sales Tax Act, 1956 reads as under :