CHHAJJOO RAM MOOL CHAND Vs. THE STATE

JUDGEMENT

(1.) This is a reference under Sec. 11 of the U. P. Sales Tax Act. The applicants in the case are Chhajjuram Mool Chand, Lalkuan, Delhi, a firm carrying on business as forest contractors in Nepal. The head office of the firm is at Delhi. The firm carries on business in cutting timber in the Nepal forests and preparing Railway sleepers among other things from it. The sleepers are brought to Railway stations Tikonia and Chandan Chauki, which are situate in Uttar Pradesh. From these stations they are distributed to the various purchasers. The applicants were assessees under the Sales Tax Act for the year 1948-49. A notice under Sec. 31 of the Sales Tax Act was issued to them on the ground that a part of their income had escaped assessment. In response to this notice the applicants produced their account-books. These account books were rejected by the Sales Tax Officer who made the assessment on the basis of the best judgment. He also held that the sales of these sleepers were completed at Tikonia and Chandan Chauki and the property in the goods passed to the buyers at those stations. The turnover to the business was, therefore, held to be assessable to Sales Tax Act in Uttar Pradesh.

(2.) Aggrieved with the said order the firm filed an appeal before the learned Judge (appeals). The learned Judge set aside the assessment order and remanded the case for further enquiry in respect of three matters which in his view arose for consideration.

(3.) The Commissioner Sales Tax then filed an application in revision against the said order of remand. In that revision application the learned Judge (Revision) was of opinion that remand was not necessary and the case should have been decided by the learned Judge (appeals) on merits. The learned Judge (appeals) found that the sales at the Railway stations were only conditional and were to be treated as complete only on the acceptance of the goods by the purchasers at the station of destination. He further held that according to the general practice some Rly. sleepers were delivered unconditionally at the two Railway stations, Tikonia and Chandan Chauki. In respect of these sleepers the sales were treated to be as complete sales within Uttar Pradesh. He, therefore, remanded the case for ascertaining as to what was the turnover of the sleepers unconditionally delivered at Tikonia and Chandan Chauki Railway stations.