RAZA TEXTILES LIMITED Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) This is a reference under the Sales Tax Act. In this reference the following question has been referred to this court:

(2.) The facts of the case briefly stated are as follows:

(3.) The petitioner M/s. Raza Textile Limited (hereinafter referred to as the assessee) manufactures cotton, hosiery, mosquito nets, etc., at Rampur. For the assessment year 1961-62 a dispute arose as to whether the assessee made an inter-State sale of cotton yarn amounting to Rs. 22,11,171.34. The case of the assessee was that the sales had not taken place at Rampur but had taken place at Delhi and the sales were made through one Messrs. Rama Shanker Company of Delhi. The case for the revenue was that there was no inter-State sale and the alleged sales at Delhi were a colourable transaction and the goods were actually sold in U.P. It was further alleged by the revenue that the assessee had taken such a stand to evade tax.