BHOJMAL AND SONS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) BY this reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as the Act), the Board of Revenue, M. P. , Gwalior, has referred the following questions of law for the opinion of this Court:

(2.) THE facts giving rise to this reference as set out in the statement of the case are as follows :

(3.) AS regards the first question the learned counsel for the assessee contended that the goods were purchased by the assessee from the dealers in Uttar Pradesh and Rajasthan and were consigned to the destination in Maharashtra and Madras in the name of the assessee. The goods were sold by the assessee to the buyers of Maharashtra and Madras by endorsing the documents of title, i. e. , railway receipt, but the sales were conditional and the transactions were finalised only after fulfilment of the condition that the goods would be analysed by the purchasers and the sale would be complete only if the goods were found to conform with the quality agreed between the parties, and that as the analysis was done after the goods had reached the destination the property in the goods was transferred to the purchasers at the destination in Maharashtra and Madras and therefore the sale was complete in those States and the goods were not liable to be taxed by the State of Madhya Pradesh. He placed reliance upon Section 4 (2) of the Central Act.